Xavier Enters into a Contract to Operate a Yummy Yogurt

question 3

Multiple Choice

Xavier enters into a contract to operate a Yummy Yogurt franchise, which Yummy agrees to support as long as Xavier maintains his business license. Yummy's duty to perform is

• A) absolute.
• B) conditional.
• C) licentious.
• D) operational.

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Definitions:

Capital Intensity Ratio

The capital intensity ratio measures the amount of capital needed per dollar of revenue; a higher ratio indicates that more assets are needed to generate income.

2018 Data

Information or statistics from the year 2018, typically used for analytical or comparison purposes.

Excess Capacity Scenario

A situation in which a company or economy can produce more goods or services than currently being produced without incurring additional costs.