What are the essential elements of a contract? List and discuss them
(a) Manifestation of mutual assent; (b) consideration; (c) legality of object; (d) capacity of the parties. In addition, in a limited number of instances, a contract must be in writing to be enforceable. The parties to a contract must manifest by words or conduct that they have agreed to enter into a contract. The usual method of showing mutual assent is by offer and acceptance. Consideration is the intentional exchange of a legal benefit or legal detriment as an inducement to the other party to make a return exchange. The purpose of a contract must not be criminal, tortious, or otherwise against public policy. The parties to a contract must have contractual capacity. Adjudicated incompetents have no legal capacity to contract. Minors, incompetent persons, and intoxicated persons have limited capacity to contract.
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Which of the following statements would be true if you own stock in a company?
a. You are an owner of the retained earnings and capital stock of the company. b. You have a claim to the assets of the business c. You have the right to receive interest on an annual basis. d. You have the right to a portion of the company's revenues each accounting period.
Traditional management information systems focus on financial reporting
Indicate whether the statement is true or false
Checks, money, stocks, and bonds are all:
a. covered by Article 2 of the UCC b. intangible personal property c. tangible personal property d. real property e. trademarks
Nakama Corporation is considering investing in a project that would have a 4 year expected useful life. The company would need to invest $280,000 in equipment that will have zero salvage value at the end of the project. Annual incremental sales would be $640,000 and annual cash operating expenses would be $480,000. In year 3 the company would have to incur one-time renovation expenses of $50,000. Working capital in the amount of $20,000 would be required. The working capital would be released for use elsewhere at the end of the project. The company uses straight-line depreciation on all equipment. The company's tax rate is 30%.The income tax expense in year 2:
A. $12,000 B. $14,500 C. $27,000 D. $48,000