The Figure Given Below Shows the Various Stages of Production

question 44

Multiple Choice

The figure given below shows the various stages of production of a Corvette, a sports car produced by General Motors Company (GMC) :
Table 5.2
$\begin{array}{l}\text { The Production of a Corvette }\\\begin{array}{|l|c|}\hline {\text { Production Stage }} & {\text { Sales Value }} \\\hline \text { Steal Co. sells the raw material to Motor Inc. } & \$ 1,500 \\\text { Motor Inc. sells the engine to GMC } & \$ 2,350 \\\text { Dealer buys car form GMC } & \$ 19,700 \\\text { Dealer sells car (retail) } & \$ 36,000 \\\hline\end{array}\end{array}$
-According to Table 5.2, the value added by the dealer is:

• A) $2,350.
• B) $16,300.
• C) $19,700.
• D) $36,000.
• E) $59,550.

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Definitions:

Preexisting Duty

An obligation that a party is already legally bound to, which cannot serve as consideration for a new contract.

Forbearance to Sue

An agreement or arrangement where a party chooses not to pursue legal action in exchange for some form of compensation or under specific conditions.

Legal Claim

A formal assertion by a party seeking judicial relief due to another party's action or failure to act in accordance with the law.

Promisor

An individual or entity who makes a promise or agreement to perform a specified act or service for a promisee.