Lin and Mercedes Agree to Incorporate to Open and Operate

question 9

Multiple Choice

Lin and Mercedes agree to incorporate to open and operate a Natural & Organic Foods Café. Before the opening,they decide to replace Mercedes with Ngo as a party to the deal. They can best accomplish this by

• A)an agreement to rescind.
• B)an accord and satisfaction.
• C)a novation.
• D)anticipatory repudiation.

---

Definitions:

Return on Investment

A performance measure used to evaluate the efficiency or profitability of an investment or compare the efficiency of a number of different investments.

Treasury Stock

Refers to shares that were issued and later reacquired by the company. It is subtracted from total equity.

Voting Rights

The rights of shareholders to vote on company matters, typically exercised during a corporation's annual general meeting.

Dividends

Payments made by a corporation to its shareholder members, distributing a portion of the company's earnings.