​Paca Is Declared Mentally Incompetent

question 2

Multiple Choice

​Paca is declared mentally incompetent. Quelita, Paca's friend, insists that Paca transfer her assets to Quelita "for safekeeping." If Paca makes this "gift," a court might conclude that it is not effective on the ground that there was no

• A) ​acceptance by the donee.
• B) ​constructive delivery.
• C) ​donative intent.
• D) ​relinquishment of control.

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Definitions:

Long Run

A period in economics during which all factors of production and costs are variable, allowing for full adjustment to change, such as new technology or market conditions.

Profit

The financial gain obtained when the revenues generated from business activities exceed the expenses, costs, and taxes involved in sustaining the activities.

Loss

An economic condition where expenses exceed revenues, indicating negative financial performance.

Profit-Maximizing

A strategy or process by which a firm determines the price and output level that returns the greatest profit.