In 2009,an Agricultural Company Introduced a New Cropping Process Which

question 41

Multiple Choice

In 2009,an agricultural company introduced a new cropping process which reduced the cost of growing some of its crops.If sales in 2008 and 2009 were steady at $25 million,but the gross margin increased from 2.3% to 3.4% between those years,by what amount was the cost of sales reduced?

• A)$275,000
• B)$325,000
• C)$425,000
• D)$575,000

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Definitions:

Hamer v. Sidway

A significant case in contract law that established the notion that forbearance (refraining from doing something) can be considered a valuable consideration in a contract.

Sufficient Consideration

A necessary element in contract law where something of value is exchanged between parties to form a valid contract.

Illusory Promises

Statements or promises that appear to assure performance or commitment but, due to vague or conditional terms, do not actually bind the promisor to any action.

Forbearance

A temporary postponement of mortgage payments granted by a lender or creditor in lieu of forcing the property into foreclosure, allowing the borrower time to catch up on payments.