In Which of the Following Situations Is It Likely That

question 30

Multiple Choice

In which of the following situations is it likely that you may NOT need a written contract?

• A)You are dealing with a party you do not know well,so you need to remain flexible.
• B)You are buying land from a member of your family.
• C)The terms of the agreement are simple and the value of the transaction is small.
• D)You have negotiated with the other party enough that you both know what the other person intends.

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Definitions:

Non-Controlling Interest

The portion of a subsidiary corporation's equity that is not owned by the parent corporation.

Consolidated Balance Sheet

A financial statement that summarizes the financial position of a parent company and its subsidiaries.

Fair Value

The proceeds from the sale of an asset or the outlay to move a liability in a non-chaotic market operation on the date of gauging.

Subsidiary

A company controlled by another company, termed as the parent company, usually through majority share ownership.