Scott Used $4,000,000 from His Savings Account That Paid an Annual

question 32

Multiple Choice

Scott used $4,000,000 from his savings account that paid an annual interest of 5% to purchase a hardware store.After one year,Scott sold the business for $4,100,000.An Economist calculated his profit to be:

• A)$300,000
• B)$100,000
• C)-$100,000
• D)-$200,000

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Definitions:

Material Fact

A fact that is significant or essential to the issue or matter at hand, often affecting the outcome of a legal case.

Fraudulent Misrepresentation

The tort that occurs when a misrepresentation is made with the intent to facilitate personal gain and with the knowledge that it is false.

Justifiable Reliance

The principle that a party has acted upon another's representation with a reasonable belief that it was true, often relevant in cases of fraud or misrepresentation.

Nondisclosure

A failure to provide pertinent information about a projected contract.