Richly Merchandise,Inc

question 25

Multiple Choice

Richly Merchandise,Inc.,contracts with Stand-Rite Contractors to build a store.Stand-Rite assigns the contract to Town Builders,which has a poor record of completing projects.Richly could most successfully argue that the contract cannot be assigned because

• A)Richly did not consent to the assignment.
• B)Richly did not receive adequate consideration for the assignment.
• C)an assignment will significantly increase the risk of nonperformance.
• D)Town Builders was not an original party to the deal.

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Definitions:

Factory Overhead

Costs related to the manufacturing process that are not directly attributable to the product being manufactured, such as utilities and maintenance of equipment.

Balance Sheet

A financial statement that presents a company's financial position at a specific point in time, including assets, liabilities, and shareholders' equity.

Manufacturing Business

A business model that transforms raw materials into final products utilizing workers, machinery, and tools.

Direct Materials

Materials that can be directly associated with the production of specific goods, integral to their manufacturing.