Lon Has Just Come Home from Serving in the Marines

question 49

Multiple Choice

Lon has just come home from serving in the Marines and contracts with a local car dealership to purchase a car.The car must be ordered,and payment is to be made when the car arrives.The next day,Lon receives orders to return to active duty.Realizing that he doesn't need the car,he brings Tony to the dealership and asks that Tony substitute for him.Tony will take delivery and ownership of the car,and Tony will pay the dealership upon delivery.The dealership agrees to have Tony substitute for Lon.What has occurred?

• A) An assignment.
• B) A novation.
• C) A delegation.
• D) An accord and satisfaction.

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Definitions:

Costs

Costs represent the expenses incurred in the production of goods or services, including materials, labor, and overhead.

Marginal Costs

The cost incurred by producing one additional unit of a product, which typically includes materials and labor.

Potential Customers

Individuals or organizations that could become buyers of a product or service, but have not yet made a purchase.

Expected Profit

The anticipated financial gain from a business venture or investment, estimated based on forecasts or previous performance.