When Several Types of Potential Common Shares Exist, the One

question 114

Multiple Choice

When several types of potential common shares exist, the one that enters the computation of diluted EPS first is the one with the:

• A) Highest incremental effect.
• B) Higher numerator.
• C) Median incremental effect.
• D) Lowest incremental effect.

Understand the definition and application of promissory estoppel.

Comprehend the concept of consideration and its requirements for a valid contract.

Recognize the features of an illusory promise and its implications on contract enforcement.

Identify the conditions under which a promise to pay a previous debt is enforceable.

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Definitions:

Price Elasticity

A measure of how sensitive the quantity demanded of a good is to a change in its price.

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded, typically downward sloping.

Supply Curve

A graph showing the relationship between the price of a good and the quantity of that good that suppliers are willing to sell at each price level.

Elastic

Describes a situation in which the quantity demanded or supplied of a good or service changes significantly in response to a change in price.