Wilma,who Lives in New York,enters into a Contract to Buy

question 29

Multiple Choice

Wilma,who lives in New York,enters into a contract to buy a painting from Fred,who lives in France.The contract includes all the costs of insuring and shipping the painting from France to New York.The agent that made the shipping estimate makes a mistake when adding up the costs and,as a result,the shipping cost listed in the contract is $1,000 less than the shipping actually costs.A court will most likely

• A)allow the parties to rescind the contract.
• B)award damages to Wilma for the mistakes.
• C)award damages to Fred for the mistakes.
• D)enforce the contract without requiring changes.

Understand the different types of business organizations and their suitability for raising capital.

Recognize the impact of an owner’s death on the dissolution of business types.

Identify the roles and responsibilities of key corporate officers such as the Treasurer and Controller.

Understand the objective of financial management and its centrality to existing shareholders.

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Definitions:

Total Wealth

The complete value of an individual's or entity's assets minus liabilities.

Reverse Split

A reduction in the number of a company's shares outstanding that increases the share price proportionately.

Stock Dividend

A stock dividend is a dividend payment made to shareholders in the form of additional shares rather than a cash payout, affecting the shareholder's portion of company ownership but not the total value of ownership.

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares, though the overall value of the company does not change.