What Is a Force Majeure Event

question 16

Multiple Choice

What is a force majeure event? 

• A)any action that makes the contract unprofitable for either party
• B)any finding in a contract that shows a provision was deliberately left unclear
• C)a disruptive,unexpected occurrence for which neither party is to blame that prevents one or both parties from complying with a contract
• D)any happening that fulfills one of the conditions in the contract,making it enforceable

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Definitions:

Net New Capital Expenditures

The total spending on new fixed assets less any proceeds from the sale of existing assets.

Shareholders' Equity

represents the residual value of a company's assets minus its liabilities, indicating the value that shareholders would theoretically receive if all assets were liquidated.

Statement of Financial Position

A financial report that provides a snapshot of a company's assets, liabilities, and equity at a specific point in time.

Noncash Expense

Expenses that do not involve actual cash flow, such as depreciation or amortization.