Sports Fit Company Sponsors the "$100,000 Game" in Which Contestants

question 1

Multiple Choice

Sports Fit Company sponsors the "$100,000 Game" in which contestants compete in ten separate athletic events over a period of weeks.Sports Fit announces that the winner of each event will be awarded $5,000 with the "Ultimate Champion"-the winner of the most events-awarded $50,000.If the "$100,000 Game" is treated as a unilateral contract,Sports Fit can

• A)cancel the contest or alter its terms at any time.
• B)not modify the terms of the contest after it begins.
• C)reduce the amount of the event prizes but not the grand prize.
• D)reduce the amount of the grand prize but not the event prizes.

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Definitions:

Preferred Stock

A class of ownership in a corporation with a priority claim on assets and earnings before common stock; typically does not have voting rights but has a fixed dividend.

Capital Stock

The total amount of stock, both common and preferred, that a company is authorized to issue according to its corporate charter.

Privately Held Corporation

A corporation that has only a few stockholders and whose stock is not available for sale to the general public.

Retained Earnings

The portion of a company's net income that is not distributed as dividends to shareholders but retained for reinvestment in the business or to pay off debt.