In January 2018,Professor Noe Entered into a Contract with State

question 33

Multiple Choice

In January 2018,Professor Noe entered into a contract with State University.She agreed to teach full time during the 2018-2019 academic year.Professor Noe died on May 31,2018.Her estate

• A)is obligated to find another person who will agree to teach during the academic year.
• B)is discharged from any further obligations under the contract.
• C)will be discharged from any obligations under the contract only if it can be shown that her death was unexpected.
• D)will not be discharged.If the University has to pay more in order to hire a comparable substitute professor at the last minute,then the estate will be responsible for the difference in pay.

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Definitions:

Return on Total Assets

A financial ratio that measures the efficiency of a company's use of its assets to generate profit, calculated by dividing net income by total assets.

Available-for-sale Securities

Financial assets that are not classified as held-to-maturity or trading securities, and can be sold in the market.