Builders,Inc

question 21

Multiple Choice

Builders,Inc.,agrees to construct an office building for Champion Hotels.The project proceeds according to plan,but before it is done,Champion tells Builders to quit.Builders may recover

• A)the contract price less costs of materials and labor.
• B)the contract price.
• C)the costs needed to complete construction.
• D)profits plus the costs incurred up to the time of the breach.

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Definitions:

Consolidated Statement

A financial statement that aggregates the financial position and operating results of a parent company and its subsidiaries.

Net Cash Flow

The total amount of money being transferred in and out of a business, especially as it relates to operational, investing, and financing activities.

Subsidiary Acquired

A business entity whose control is obtained by another entity (parent company) through the acquisition of its majority voting stock.

Financing Cash Flows

Cash flows associated with the raising of capital and repayment of borrowings, including issuing and repurchasing shares, and payment of dividends.