Fact Pattern 21-A1 (Questions A9-A10 Apply)

question 6

Multiple Choice

Fact Pattern 21-A1 (Questions A9-A10 apply)
Internet Cafés,Inc.,contracts to buy all of its requirements for coffee,at a minimum of 1 million pounds per year,from Java Corporation for six years.After three years,Internet tells Java that it plans to sell its assets to Bagel Bistros,Inc.Bagel Bistros refuses to assure Java that it will continue Internet's contract.
-Refer to Fact Pattern 21-A1.Bagel Bistros's refusal is

• A)a justified response based on Bagel Bistros's relation to the contract.
• B)an assignment of Internet's rights under the contract.
• C)a reasonable suspension of performance under the contract.
• D)a repudiation of the contract.

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Definitions:

Asset Management

The systematic process of developing, operating, maintaining, and selling assets in a cost-effective manner.

Equity Capital

Funds raised by a company through the sale of shares in return for ownership interest, without obligation to repay the investment.

Issuing Bonds

The act of a corporation or government raising capital by borrowing from investors through the sale of bond securities.

Reinvesting Earnings

The practice of using a company's profits to invest back into the business to fund growth, expansion, or improvements rather than distributing it to shareholders as dividends.