Which One of the Following Individuals Should Have a Higher

question 70

Multiple Choice

Which one of the following individuals should have a higher tolerance for risk?

• A)Joan Cummings, who is a single mother with two small children
• B)Darren Carter, who works for American Airlines and is worried that he is going to be laid off soon
• C)Barry Parks, who is an investment banker and earns over $200,000 per year
• D)Michael Clark, who is 74 years old and has been retired for 6 years
• E)Fred Funderbunk, who is a pizza delivery person and makes about $15,000 per year

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Definitions:

Statute of Frauds

An established legal doctrine stipulating some contractual arrangements need to be formalized in writing and authenticated by the signatures of all parties for enforceability.

Third-Party Debts

Debts that involve a creditor and debtor, with a third party also playing a role, either as a guarantor or through some other capacity.

Promissory Estoppel

A legal principle where a promise is enforceable by law, even if made without formal consideration, when a promisor has made a promise to a promisee who then relies on that promise to his or her detriment.

Legal Enforcement

The act of compelling compliance with the law, often through police or judicial action.