​Ozzie Contracts for the Sale of 500 Shares of Stock

question 56

Multiple Choice

​Ozzie contracts for the sale of 500 shares of stock in Premium Quality, Inc., to Ray, with payment to go to Scholar University to pay Thalia's tuition. The contract reserves to Ozzie and Ray the right to modify its terms. Scholar's right to payment is

• A) ​not affected by the reservation.
• B) ​subject to any change that Ozzie and Ray make.
• C) ​limited only if Thalia agrees to any changes.
• D) ​terminated by the reservation.

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Definitions:

Dividends

Payments made by a corporation to its shareholder members, usually as a distribution of profits.

Cost Of Capital

The minimum rate of return a company must earn on its investments to maintain its market value and satisfy its investors.

Individual Project

A specific, defined task or study designed to achieve particular goals within a given timeframe, typically involving a detailed plan and execution by one or more individuals.

Weighted Average

An analysis that incorporates the diverse levels of relevance of the numbers within a dataset.