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Trein,IncEntered into a One-Year,$1 Million Contract with Mia,a Sports Celebrity,to

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Trein,Inc.entered into a one-year,$1 million contract with Mia,a sports celebrity,to promote Trein's products.E-presto Inc.,a competitor of Trein,was interested in having Mia promote its products and knew of her contract with Trein.E-presto offered Mia a three-year,$5 million contract.Mia left Trein and signed with E-presto.Which statement is correct?


Definitions:

Net Capital Spending

The total expenditure on fixed assets less any sales of fixed assets, measuring a company's investment in its physical assets.

Net Fixed Assets

The value of a company's property, plant, and equipment minus any depreciation, representing the company's long-term investments.

Operating Cash Flow

The cash generated from the normal operations of a business, indicative of the company's financial health.

Accounts Receivable

The money owed to a company by its customers for goods or services that have been delivered but not yet paid for.

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