A Firm That Only Utilises 40% of Its Fixed Assets

question 80

True/False

A firm that only utilises 40% of its fixed assets capacity to generate R1,000,000 in sales will be able to increase sales to R4,000,000 before full capacity is reached and plant and equipment would have to be increased.

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Definitions:

Promissory Estoppel

A legal principle preventing someone from arguing that an unenforceable promise they made should not be upheld, because the other party relied on that promise to their detriment.

UCC

All commercial activities in the United States are subject to the intricate legal structure of the Uniform Commercial Code.

Promissory Estoppel

A legal concept that bars a person from canceling a promise made to someone else if that individual has sensibly relied on the promise to their misfortune.

Contract

A contract between two or more parties that is recognized and enforceable under the law.