Fact Pattern 14-2

question 13

Multiple Choice

Fact Pattern 14-2
Medical Accounts Collection enters into a contract to employ Natalie as a billing and credit manager for two years. During the first year, Natalie is often absent without explanation and when present fails to adequately do her job.
-Refer to Fact Pattern 14-2. Natalie's performance most likely

• A) discharges Medical Accounts from the contract.
• B) has no effect on Medical Accounts's performance.
• C) undercuts Medical Accounts's duties under the contract.
• D) suspends Medical Accounts's duty to perform.

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Definitions:

Premium on Bonds Payable

The amount by which the selling price of a bond exceeds its par value or face value.

Discount on Bonds Payable

The difference between the face value of a bond and its selling price, when the bond is sold for less than its face value.

Market Rate of Interest

The interest rate prevailing in the market for securities of similar risk and maturity.