Fletcher Company Is Trying to Decide Whether to Trade in Equipment

question 159

Essay

Fletcher Company is trying to decide whether to trade in equipment used in its manufacturing process for a newer model.The new equipment will save money because it will be more efficient to use.Indicate if the following items are relevant or irrelevant to this decision.

---

Definitions:

Material Fact

A fact that could influence the decision-making of an individual or entity, such as in a legal contract or in financial disclosures.

Furnished Information

Data or details provided, often to an authority or for a specific purpose, which are supplied or equipped by a party.

Fraudulent Misrepresentation

Deception used to induce someone into a contract, involving false statements that the speaker knows to be untrue.

Fraudulent Misrepresentation

A false statement of fact made knowingly, or without belief in its truth, or recklessly, intended to induce another party to enter into a contract.