Sam Placed an Announcement in the Newspaper as Follows: "$200

question 113

Multiple Choice

Sam placed an announcement in the newspaper as follows: "$200 reward for the return of two lost Siamese kittens." Joe read the ad, found the kittens, and returned them. This is an example of which of the following?

• A) Invitation to treat
• B) Offer
• C) Gratuitous promise
• D) Bilateral contract
• E) Unilateral contract

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Definitions:

Capital Budgeting

The process businesses use to evaluate potential major projects or investments, assessing the value they may add to the company.

Capital Intensity Ratio

A metric that measures the amount of capital needed per unit of output, indicating how capital-intensive a business is.

External Financing Needed (EFN)

The amount of financing required to balance both sides of the statement of financial position.

Dividend Payout Ratio

A financial ratio that measures the percentage of net income a firm pays out to its shareholders as dividends.