Austen Construction,a General Contractor,advertised for Bids from Subcontractors on the Electrical

question 24

Multiple Choice

Austen Construction,a general contractor,advertised for bids from subcontractors on the electrical work for the renovation of one of State University's parking structures.The advertisement announced that the contract would be awarded to the lowest responsible bidder.Bronte,a responsible electrical subcontractor,submitted the lowest bid to Austen for the electrical portion of the work.Austen informed Bronte that she should begin work immediately.Bronte then stated that she is "withdrawing" her bid from Austen.Which of the following statements is most accurate?

• A)Austen should not rely on Bronte's offer to do the electrical work.
• B)Austen accepted Bronte's offer,thereby forming a contract.
• C)Austen is not bound by Bronte's bid until he informs her of his intent to accept.
• D)Bronte has accepted Austen's offer by submitting the lowest bid.

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Definitions:

Total Assets

The sum of all current and non-current assets owned by a company, including cash, inventory, property, and equipment.

Gross Margin Percentage

A financial metric that represents the gross margin as a percentage of total sales revenue, indicating the efficiency of a company in producing and selling goods.

Price-Earnings Ratio

A valuation metric for stocks, calculated by dividing the market price of a stock by its earnings per share, indicating the dollar amount an investor can expect to invest in a company to receive one dollar of that company’s earnings.

Common Stock

Equity ownership in a corporation, with shareholders entitled to vote on corporate matters and receive dividends when declared.