Flossy promises to pay her cousin Garth, who is dangerously obese, $10,000 if Garth loses 100 pounds within the next two years. Garth agrees, performs his part of the bargain, and asks for the money. Flossy refuses to pay, saying that she forgot about the deal, but that even if she did make such a pledge, there was no valid consideration for it. Garth files a suit against Flossy. In whose favor is the court likely to rule, and why?
What will be an ideal response?
A court is most likely to rule against Flossy and in favor of Garth. Garth provided legally sufficient consideration by losing 100 pounds in weight over the stipulated two-year period. Generally, a waiver of a legal right¾in this case, the right to eat to obesity¾at the request of another party is sufficient consideration to support a promise. The promise in this question was the payment of $10,000. It does not matter whether the performance¾the loss of weight¾also benefited the Garth.
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Another name for net income of a business is _________________________
Fill in the blank(s) with correct word
Toro Company recognized $655,000 of cost of goods sold in 2010, in addition its implementation of a just-in-time inventory system allowed it to reduce its inventory from $325,000 at the beginning of the year to $230,000 at the end of 2010 . How much cash did Toro spend for inventory in 2010?
a. $655,000 b. $980,000 c. $560,000 d. $620,000
A report's format is less important than its content
Indicate whether the statement is true or false
Answer the following statement(s) true (T) or false (F)
1. Dividends are required by law to all shareholders. 2. Working capital is the amount of capital available for the day-to-day running of the firm. 3. If you have a checking account and have written checks for $1000 but only $100 of checks have cleared, the $100 of checks that have cleared are referred to as float. 4. Trade credit and factoring are good sources of capital investments. 5. Capital budgeting involves comparing and evaluating the revenues and expenses for one year and determining what portion must be invested in order to ensure an adequate rate of return for the firm.