Apps LLC Enters into a Contract with Birk, the Chief

question 24

Multiple Choice

Apps LLC enters into a contract with Birk, the chief executive officer of Corporate Sales Inc., to create an app for the firm. To fulfill the contract, Apps hires Dave as a student intern. With respect to the app contract, Dave is

• A)an intended beneficiary.
• B)an incidental beneficiary.
• C)a promisee.
• D)a promisor.

---

Definitions:

Debt-Equity Ratio

A metric indicating the balance between shareholders' equity and debt in financing a company's assets.

Capital Spending

Expenditures by a business for acquiring or upgrading physical assets such as property, industrial buildings, or equipment.

Earnings Estimate

A projection or forecast of a company's future earnings per share, often provided by analysts.

Dividend Income

Income received from owning shares in a company, usually distributed from the company's profits.