Contracts Are Enforced By

question 4

Multiple Choice

Contracts are enforced by:

• A)the firms that make the contracts through buy-out clauses.
• B)law firms that specialize in contract enforcement.
• C)corporations specializing in contract writing and enforcement.
• D)government through the judicial system.
• E)both households and firms through customer relations departments.

Apply the concept of corrective action based on the comparison of actual performance against standards.

Differentiate between various performance comparison approaches (relative, engineering, historical).

Recognize the significance of setting appropriate performance standards and objectives.

Identify different control systems (cybernetic, feedback, concurrent) and their applications.

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Definitions:

Stock Dividend

A distribution of extra shares to a company's shareholders, as opposed to monetary compensation.

Retained Earnings

Profits that have been reinvested in the company rather than distributed to stockholders as dividends.

Fiscal Year

A twelve-month period chosen for accounting purposes and financial reporting, which may or may not align with the calendar year.

Treasury Stock

Shares that were issued and subsequently reacquired by the corporation, reducing the amount of outstanding stock on the open market.