Havens Steel's Claim That They Received Verbal Approval for the Design

question 11

Multiple Choice

Havens Steel's claim that they received verbal approval for the design change from an engineer at Jack D. Gillum with the understanding that a written request would be submitted is irrelevant because

• A) no written request was ever submitted.
• B) the engineer who gave verbal approval was not qualified to make the decision.
• C) the change that was approved by Gillum was not followed by Haven Steel.
• D) None of the above

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Definitions:

Formal Journal Entry

A written record in the books of accounts that documents a business transaction systematically.

Stock Warrants

A form of derivative that gives the holder the right, but not the obligation, to buy a company's stock at a specific price before the warrant expires.

Intrinsic Value Method

A method of valuing a company or its stock by determining the present value of its expected future earnings or cash flows, disregarding current market conditions.

Stock Appreciation Rights

A type of employee compensation linked to the increase in the price of the company's stock over a set period.