Twyla's Dock Is Damaged in an Accident Caused by Ulrich's

question 51

Multiple Choice

Twyla's dock is damaged in an accident caused by Ulrich's negligence. Twyla agrees not to sue him if he will pay for the damage. If Ulrich fails to pay, Twyla can bring an action for breach of contract. This is

• A) ​a covenant not to sue.
• B) ​an illusory promise.
• C) ​an unforeseen difficulty.
• D) ​a release.

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Definitions:

Inventory Turnover

A financial ratio that measures how many times a company's inventory is sold and replaced over a specific period.

Payables Turnover

A financial ratio that shows how quickly a company pays off its suppliers by comparing net purchases to average accounts payable.

Accounts Receivable Period

The average number of days it takes for a company to collect payments from its credit sales.

Cash Cycle

The duration a company takes to convert its investments in inventory and other resources into cash flows from sales.