Orchid and Peony Enter into a Contract for the Sale

question 13

Multiple Choice

Orchid and Peony enter into a contract for the sale of Orchid's textbook at the end of the fall semester for which Peony agrees to pay Orchid $75.Peony wants to transfer her right to payment for the book to Queenie.This transfer

• A)is prohibited.
• B)may be oral or written.
• C)must be implied.
• D)must be in writing.

---

Definitions:

Excess Cash

The amount of cash owned by a business that exceeds its immediate operational and investment needs, often signaling financial strength.

Equity Financed

Refers to the method of funding a company or its operations through selling shares of stock to investors, rather than acquiring debt.

Market Price

The current value at which an asset or service can be bought or sold in a marketplace.

Ex-dividend

The ex-dividend date is the date on which a stock begins trading without the entitlement to receive the most recently declared dividend, meaning buyers from that day onward will not receive the dividend.