Nell gives Al $50 in return for Al's promise to defame Sara. Nell hopes to ruin Sara's chances at a promotion. Nell finds out that Al did not hold up his end of the agreement. Which of the following statements is true?
A) Nell can get the money back from Al through litigation.
B) Nell can get the money back and force Al to do as he promised.
C) Legally, Nell can neither get the money back nor force Al to do as he promised.
D) Nell can force Al to act through an appeal to the courts, but Al gets to keep the $50.
C
You might also like to view...
The doctrine of ________ allows the court to order an oral contract for the sale of land or transfer of another interest in real property to be specifically performed if it has been partially performed and performance is necessary to avoid injustice
A) part performance B) undue performance C) equitable performance D) promissory estoppel
A corporation is a foreign corporation in states other than the one in which it is incorporated
Indicate whether the statement is true or false
a. ROA focuses on both statements because it is a ratio of net income (from the income statement) divided by total assets (from the balance sheet). b. EVA is not more comprehensive than ROA. They both contain exactly the same inputs (net income and total assets). EVA also contains the weighted average cost of capital explicitly in the formula. But to implement ROA, each division's ROA must be compared to its weighted average cost of capital (wacc). Just because two divisions have the same ROA does not mean they are performing the same if they have different wacc (because their risk factors differ). c. Disagree. EVA and ROA can be applied to each case once the appropriate wacc is set. Both metrics are short-run to the extent that accounting earnings measure last year's earnings; they do
not capture future growth opportunities. For example, R&D expenditures reduce current accounting earnings, but are expected to produce future growth. Both EVA and ROA create incentives for managers to cut R&D spending to boost current ROA and EVA. However, these incentives are reduced if R&D is treated as a capital asset and not deducted from earnings. This adjustment can be made to accounting earnings and assets for both ROA and EVA. Finally, providing long-run incentives can be accomplished by the choice of performance rewards such as stock, options, and deferred compensation. What transfer price should be set for Pepsi transferred from the soft drink division of PepsiCo to a PepsiCo restaurant such as Taco Bell? Justify your answer.
When buying a business, which of the following is not a factor to consider when investigating the competition?
a. effect of price competition on profits b. reduction of market share c. advertising costs d. number of employees