Loren and Kendra Enter into a Contract for the Distribution

question 63

Multiple Choice

Loren and Kendra enter into a contract for the distribution of Loren's produce to local restaurants for which he agrees to pay Kendra.Kendra transfers her right to payment under the contract to County Bank.This transfer is

• A)a delegation.
• B)an assignment.
• C)a third party beneficiary contract.
• D)prohibited.

---

Definitions:

Residual Income

Income that remains after all personal debts and expenses have been paid, or in corporate finance, the amount of net income left over after paying out dividends to shareholders.

Weighted Average Cost of Capital

A calculation of a firm's cost of capital in which each category of capital (debt, equity, etc.) is proportionately weighted, reflecting the cost of financing new projects based on the company's existing capital structure.

Deferred Payment Incentive

A compensation structure where part of an individual's or entity's payment is postponed to a future date, often used as an incentive or reward.

Short-term Profit

Profits earned over a short period of time, typically a quarter or a year, reflecting the immediate financial health of a company.