Sable and Rex Agree While Talking on the Phone to Form

question 9

Multiple Choice

Sable and Rex agree while talking on the phone to form a partner?ship to deal in transfers of real property.Their partnership agreement is legally binding

• A)only if a copy of the agreement is filed in the appropriate state office.
• B)only if the agreement is reduced to writing.
• C)only if the parties exchange valid consideration.
• D)without more.

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Definitions:

2-For-1 Split

A stock split where for each share owned, a shareholder receives an additional share, effectively doubling the number of shares.

Premium

The amount paid for an option or insurance policy above its intrinsic value or the amount that an asset's selling price is above its face value.

Gross Profit

The difference between sales revenue and the cost of goods sold before deducting overhead, payroll, taxation, and interest payments.

Option Contract

A financial contract that gives the holder the right, but not the obligation, to buy or sell an underlying asset at a specified price on or before a specified date.