Martha Owns a Gutter Cleaning Business

question 37

Multiple Choice

Martha owns a gutter cleaning business.Under a service contract with John Miller,she substantially performed her obligations.She is entitled to receive:

• A)the full contract price.
• B)nothing until she fully performs.
• C)the full contract price minus the value of the defects.
• D)nothing as she has breached the contract.

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Definitions:

Free Cash Flow

The sum of money a business produces once it subtracts the cash spent to sustain its operations and upkeep of its capital assets.

Operating Costs

Expenses associated with running a business's core operations on a daily basis, excluding the cost of goods sold.

Net Operating Working Capital

Net operating working capital is a financial measure that represents the difference between operating current assets and operating current liabilities.

Tax Liability

The total amount of tax that an individual or a corporate entity owes to a tax authority.