An Intended Donee Beneficiary May Enforce the Contract Against the Promisor

question 3

True/False

An intended donee beneficiary may enforce the contract against the promisor only.

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Definitions:

Capitalized

Recording an expenditure as an asset on the balance sheet, rather than an expense on the income statement, to spread its cost over its useful life.

Capital Expenditures

Money allocated by a business to purchase or improve tangible assets like land, factories, or machinery.

Operating Efficiency

A measure of how well a company uses its resources to produce goods or provide services.

Useful Life

The estimated duration of time a fixed asset is expected to be economically useful to the owner, used for depreciation calculations and planning.