Jake and Sally Have Dated for Several Months

question 147

Multiple Choice

Jake and Sally have dated for several months. They have talked briefly about marriage and more extensively about living together. They have a strong sexual attraction to each other and describe their relationship as passionate. Sally feels very lucky to have met someone like Jake and wants to spend all of their free time together. She is even willing to take up Jake's hobbies so that they can be together all of the time. Lately, Sally has developed an intense jealousy over Jake spending time with his friends from work. Jake cares for Sally but wants to maintain some degree of freedom. If Jake and Sally were to marry without changes in the basic elements of their relationship it is not likely that the marriage would be successful because

• A) Sally has unrealistic expectations about their relationship.
• B) Jake's desire to be with friends indicates he is unable to make a true commitment to Sally.
• C) Jake does not love Sally.
• D) Sally does not love Jake.

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Definitions:

Fair Value

The expected proceeds from an asset sale or the financial commitment for a liability shift in an orderly engagement among market participants at the time of determining value.

Loss on Acquisition

A financial loss that occurs when the cost to acquire a company or asset exceeds its fair value.

Gain on Sale

The profit realized from the sale of assets that exceeds the book value of those assets.

Other Comprehensive Income

Income that is not included in net income, including items that are not realized, such as foreign currency translation adjustments and unrealized gains or losses on investments.