Rural Power Utility,Inc

question 13

Multiple Choice

Rural Power Utility,Inc.,enters into a contract with Shovel Excavation Service to dig up,replace,and rebury Rural's cables in a certain location.Rural advances Shovel 10 percent of its cost.The parties rescind the contract.Shovel's refund of the payment is

• A)a penalty.
• B)liquidated damages.
• C)restitution.
• D)a breach of contract.

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Definitions:

ROI

Return on Investment; a performance measure used to evaluate the efficiency or profitability of an investment or compare the efficiency of multiple investments.

Combined Turnover

The sum total of sales or revenues generated by different segments, departments, or subsidiaries of a company within a specified period.

Investment Opportunity

An option available to individuals or companies to invest capital with the expectation of generating a return.

Residual Income

The profit earned after deducting the cost of capital from the net operating income.