Todos Ltd. agrees to supply United Steel, Inc., with minerals from Venezuela. When the government is unexpectedly overthrown in a revolution, Todos can obtain the goods only at a much higher price. United agrees to pay but later files a suit to recover the difference. The court will most likely rule that
A. a change in government is a risk ordinarily assumed in business.
B. an unforeseen difficulty supported the contract modification here.
C. Todos engaged in extortion or the so-called holdup game.
D. Todos had a preexisting duty to supply the goods at the initial price.
Answer: B
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A) operating activities. B) investing activities. C) credit activities. D) financing activities.
If a contract is divisible, the court:
A. rules that the entire contract is unenforceable. B. voids the entire contract. C. enforces the legal parts of the contract. D. enforces the entire contract.
Select the statement that is incorrect concerning the appropriations of retained earnings
a. Appropriations of retained earnings reflect funds set aside for a designated purpose, such as plant expansion. b. Appropriations of retained earnings do not change the total amount of stockholders' equity. c. Appropriations of retained earnings can be made as a result of contractual requirements. d. Appropriations of retained earnings can be made at the discretion of the board of directors.
Which of the following is an example of a marketing factor that has been shown to be important in determining advertising frequency levels?
A. message complexity B. clutter C. purchase and usage cycles D. media scheduling E. message uniqueness