Deepwater Dredging Company Holds Itself Out to Others as Being

question 10

Multiple Choice

Deepwater Dredging Company holds itself out to others as being a corporation but makes no attempt to incorporate. Estuary Marina signs a contract with Deepwater and Deepwater fails to perform. Estuary Marina files a suit against the firm. The court will likely hold that Deepwater is

• A)a corporation by estoppel.
• B)an alien corporation.
• C)an S corporation.
• D)a close corporation.

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Definitions:

Materials Equivalent Units

A measure used in process costing that represents the amount of materials put into production, adjusted for any unfinished work.

First-In, First-Out

An inventory valuation method where the goods first added to inventory are the first ones to be sold.

Finishing Department

The final stage in a manufacturing process where products undergo last touches, quality checks, and preparation for sale or distribution.

Conversion Equivalent Units

A concept in cost accounting used to measure the work done on inventory, converting partially finished goods into a number of fully finished units.