All of the Following Contracts Would Be Illegal,and Not Binding

question 92

Multiple Choice

All of the following contracts would be illegal,and not binding on the parties,except

• A) a contract whereby one person agrees to spread false and damaging information about another.
• B) a contract whereby one person agrees to sell a banned substance (e.g., cocaine) to another.
• C) the act of paying for sexual favours (prostitution).
• D) a contract between camera dealers whereby they agree not to sell a specific model of camera below a specified price.
• E) a contract in which lawyer agrees to represent an accused where the accused did commit the crime.

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Definitions:

Financial Leverage

The use of borrowed funds with the intent to increase the return on equity.

EBIT-EPS Lines

Graphical representations that show the impact of financing choices, especially debt and equity, on a company's earnings per share (EPS) for various levels of earnings before interest and taxes (EBIT).

EPS

Earnings per share; a measure of a company's profitability calculated by dividing its net income by the number of outstanding shares.

EBIT

Earnings Before Interest and Taxes, a profitability measure for companies that doesn't include costs associated with taxes or interest.