Albert Has a Contract to Buy 100 Tables from Bartholomew

question 41

True/False

Albert has a contract to buy 100 tables from Bartholomew at a price of $50 a table. Five days before Bartholomew is to deliver the tables, he calls Albert to say that he is sorry but $50 won't cover his costs, and he will now need at least $75 a table. Albert agrees, because he needs the tables for his special sale. The modified contract is enforceable even though Albert isn't getting any new consideration, so long as Bartholomew is acting in good faith and the agreement to the new price is put in writing.

---

Definitions:

Return on Common Stockholders' Equity

A measure of profitability that indicates how much profit a company generates with the money shareholders have invested, expressed as a percentage.

Asset Turnover

A profitability ratio that measures how effectively a business is using its assets to generate sales, computed as sales divided by average total assets (excluding long-term investments).

Dividend Yield

The dividend per share a company pays out to its shareholders annually, expressed as a percentage of the stock's current market price.

Return on Stockholders' Equity

A financial ratio that measures the profitability of a corporation in relation to stockholders' equity, indicating how efficiently equity is being utilized.