Alice and Bart Enter into a Contract for the Sale

question 14

Multiple Choice

Alice and Bart enter into a contract for the sale of Canyon Ranch. To be enforceable, this contract must be

• A) substantiated by reliable, external evidence.
• B) signed in a sufficient manner by both parties.
• C) in writing or evidenced by a written memorandum.
• D) complete and with all possible terms.

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Definitions:

Quality of Income

A measure of how easily a firm's accounting income can be converted into cash, reflecting the company's financial stability.

Price/Earnings Ratio

A financial ratio that measures a company's share price relative to its earnings per share, indicating how much investors are willing to pay per dollar of earnings.

Dividend Yield

A monetary ratio demonstrating the proportion of yearly dividends distributed by a corporation in relation to its share value.