Marlene,a Self-Employed 16-Year-Old Whose Parents Are Deceased,buys a Dress on Credit

question 89

Multiple Choice

Marlene,a self-employed 16-year-old whose parents are deceased,buys a dress on credit for $50.After receiving the dress and discovering that its reasonable value is only $25,Marlene tries to disaffirm the deal before paying the $50.In this case:

• A)Marlene can disaffirm,and she is bound to pay the full $50.
• B)Marlene can disaffirm,but she is only bound to pay $25.
• C)Marlene can disaffirm,and she can return the dress without paying for it.
• D)Marlene can disaffirm,and she can keep the dress without paying for it.

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Definitions:

Dividend Per Share

The amount of dividend a company pays out for each share of its stock.

Net Income

The profit of a company after all expenses and taxes have been deducted from revenue, indicating its financial performance.

Shares Outstanding

The total number of a company's shares that are currently owned by shareholders, including those held by institutional investors and restricted shares owned by the company’s officers and insiders.

Days Sales Outstanding

A calculation used by a company to estimate the average number of days it takes to collect payments after a sale has been made.