ABC Partnership Agrees to Hire an "Errand Runner" 20 Hours

question 60

Multiple Choice

ABC Partnership agrees to hire an "errand runner" 20 hours per week for the summer. Alan, a partner, interviews a college student and decides to offer her the job. But she says she needs a 40-hour-a-week job, so Alan agrees to make it 40 hours. What result?

• A) ABC Partnership is not bound to hire her.
• B) ABC Partnership is bound to pay her for 40 hours per week.
• C) Alan is bound to pay her for 20 hours per week.
• D) Alan has to pay her for 40 hours per week.

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Definitions:

Debt Securities

Financial instruments representing money borrowed that must be repaid, with terms that define the amount, interest rate, and maturity date.

Bonds

Fixed income investments in which an investor loans money to an entity (corporate or governmental) that borrows the funds for a defined period at a variable or fixed interest rate.

Convertible Bond

A type of bond that can be converted into a predetermined number of shares of the issuing company's stock.

Subscription Agreements

Legal agreements for the purchase of shares in a company, typically used in private placements, detailing the terms and conditions of the investment.