Fact Pattern 15-1 Restore Construction Company Enters into a Contract

question 34

Multiple Choice

Fact Pattern 15-1 Restore Construction Company enters into a contract with Sam to remodel Tess's Home Store, using products from United Building Supplies.
Refer to Fact Pattern 15-1. United will realize a profit from the sale of products to Restore to remodel Tess's store. United is

• A) a delegatee.
• B) an assignee.
• C) an incidental beneficiary.
• D) an intended beneficiary.

---

Definitions:

External Funds

Capital that comes from outside of a company, which can include debt financing from banks or equity financing from investors.

Assets And Liabilities

The fundamental components of a company's or individual's financial position, where assets represent resources owned, and liabilities represent obligations owed to others.

Spontaneously Generated Funds

Internal funds generated by a company's operations without the need for external financing.

Retained Earnings

The portion of net income not distributed to shareholders but reinvested in the business or kept as reserve.