Fact Pattern 15-B1 (Questions B1-B2 Apply)

question 24

Multiple Choice

Fact Pattern 15-B1 (Questions B1-B2 apply)
Digital Storage,Inc.,offers to sell provide cloud-computing services to Entrepreneur Enterprises,Inc.,but mistakenly transposes some of the digits in the price so that $15,400 appears in the offer as $14,500.Entrepreneur Enterprises accepts the written offer.
-Refer to Fact Pattern 15-B1.Digital Storage's best defense against enforcement of the contract is that Entrepreneur Enterprises knew

• A)a bilateral mistake supports the cancellation of a contract.
• B)a mistake of value supports the cancellation of a contract.
• C)a unilateral mistake supports the cancellation of a contract.
• D)the price was below the prices of comparable devices.

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Definitions:

Current Ratio

A financial ratio indicating a firm's capacity to settle short-term debts or liabilities due within the next 12 months.

Horizontal Analysis

A financial analysis technique comparing historical data, such as revenues or profits, over a series of periods to identify trends or patterns.

Trend Analysis

The practice of collecting information and attempting to spot a pattern, often used in financial markets or to analyze business data.

Net Income

The total profit or loss of a company after all revenues and expenses have been accounted for.