MrGreen Enters into a Contract with Ms

question 42

Multiple Choice

Mr.Green enters into a contract with Ms.White to purchase legal ingredients used to perfect an illegal marijuana manufacturing operation.Ms.White refuses to pay the amount owed to Mr.Green and he sues in court.What is the court likely to do?

• A) Recognize the contract but only allow 50% economic recovery for Mr.Green since his products were used to produce illegal items.
• B) The court will likely not enforce Mr.Green's contract since it was part of an illegal action.
• C) The court will likely enforce the agreement if Mr.Green registered the contract with the Secretary of State's office.
• D) The court will enforce the agreement if Mr.Green has lived in the forum state longer than Ms.White.

Differentiate between various forms of business ownership and their characteristics.

Calculate and interpret expected profit rates and understand their implications on investment decisions.

Understand the concept of marginal efficiency of capital and its relevance to investment decisions.

Recognize the impact of interest rates on investment decisions and opportunity costs.

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Definitions:

Cost Of Goods Sold

Refers to the total expense directly related to the production of goods or services a company sells.

Current Ratio

A liquidity ratio; current assets are divided by current liabilities to indicate a company’s ability to pay its short-term debt. This ratio does not provide as much certainty as the acid test ratio.

Current Assets

Assets that can be converted into cash or used within one year or the normal operating cycle of the business, whichever is longer.