Fact Pattern 14-2?Luann and Mace Are Partners in Networx, a Computer

question 40

Multiple Choice

Fact Pattern 14-2?Luann and Mace are partners in Networx, a computer peripherals firm.
-Refer to Fact Pattern 14-2.Mace dissociates from Networx.Luann signs a contract with Physik Drives, a wholesale component supplier, apparently on Networx's behalf.Physik does not know of Mace's dissociation.The contract is binding on

• A)Luann, Mace, and Networx.
• B)Luann only.
• C)Networx only.
• D)Physik only.

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Definitions:

Optimal R&D

The most efficient level of investment in research and development activities that maximizes the potential for innovation and return on investment.

Expected-Rate-Of-Return

The predicted yield or profit from an investment over a specified period, considering the risks involved.

Diminishing Marginal Returns

A principle stating that as one input variable is increased, there is a point at which the marginal per unit output starts to decrease, holding all other inputs constant.