A Valid Contract May Be Unenforceable for Which Reason(s)

question 2

Multiple Choice

A valid contract may be unenforceable for which reason(s) ?

• A)Failure to satisfy the statute of frauds.
• B)Running of the statute of limitations.
• C)Both (a) and (b).
• D)A valid contract is always enforceable.

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Definitions:

Average Collection Period

The average number of days it takes for a company to receive payments owed by its customers, indicating the effectiveness of its credit and collection policies.

Inventory Turnover

A figure representing the frequency at which a business's stock is both sold and refilled over an assigned period, showing the adeptness of inventory administration.

Accounts Receivable Turnover

A financial metric that measures how efficiently a company collects payments from its customers by dividing total sales by average accounts receivable.

Total Asset Turnover

A ratio that evaluates the effectiveness of a firm's utilization of its assets to produce sales income.