What Would Have to Be Present in a Contractual Situation

question 42

Multiple Choice

What would have to be present in a contractual situation in order for a court to refuse to invoke the application of the parol evidence rule?

• A) a consumer's personal guarantee to close a deal
• B) an all-inclusive agreement involving more than one item
• C) a consumer contract requiring expatiated evidence
• D) an intentional partly oral and partly documented contract

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Definitions:

Financial Risk

The chance of experiencing financial loss from an investment or enterprise because of different economic elements.

ROA

Return on Assets is a measure of how effectively a company uses its assets to generate profit, calculated as net income divided by total assets.

ROE

Return On Equity, a measure of financial performance calculated by dividing net income by shareholders' equity.

Financial Leverage

The use of borrowed funds to increase a company's investment potential, which can amplify both potential returns and potential losses.