In Axelson V

question 86

Multiple Choice

In Axelson v.McEvoy-Willis,McEvoy hired Axelson to build special equipment for oil rigs,after forms went back and forth,Axelson built equipment for McEvoy,which suddenly cancelled the contract.Axelson sued for damages;McEvoy noted the contract stated it could cancel at any time.The appeals court held that:

• A)McEvoy was not liable for any damages
• B)if the conduct of both parties had recognized the existence of a contract before the insertion of the term that McEvoy had the right to cancel the order at any time,McEvoy would have been liable for breach of contract,but this was not the case
• C)the contract was unfair to Axelson,so McEvoy was liable
• D)McEvoy was liable for punitive damages
• E)none of the other choices are correct

Recognize the significance of free cash flow in valuation and investment decision-making.

Comprehend the role of accrual accounting earnings in predicting future cash flows.

Appreciate the importance of risk evaluation in determining discount rates for future cash flows.

Understand the creation and use of pro forma financial statements in business analysis.

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Definitions:

Corporate Relocations

The process of moving a company's operations, headquarters, or facilities from one location to another, often for strategic, operational, or financial reasons.

Economic Research

The systematic study of economic phenomena and questions, using data and statistical methods to analyze and predict economic behaviors.

Rent-Seeking Behavior

Activities aimed at increasing one’s share of existing wealth without creating new wealth, often through manipulation or exploitation of the political environment.

Subsidized Loan Program

A financial aid program where the government or an organization offers loans at reduced interest rates or with favorable terms to support certain activities or sectors.