Answer:
B. Kim will win, because the bonus is a reward for work they have already performed, which is past consideration and cannot be used to create a contract.
Explanation:
In order for a contract to be enforceable, consideration must be exchanged between both parties. In this case, Kim made a promise that included consideration ($3,500) but Gold didn't exchange of give anything back. The swimming pool is already finished and it represents another different contract.
Another example would be a boss telling a subordinate that he/she will receive a bonus for having worked 10 years in the firm. The employee already got paid for working the 10 years, so there is no actual exchange of new consideration.
Answer:
a. less ice cream, less coffee
Explanation:
The percentage change in CPI is given by:
The percentage change in the prices of coffee and ice cream, respectively, are:
Both coffee and ice cream had an increase in price above the CPI increase, which means that both goods are being sold above the equilibrium price and thus their demand is likely to fall.
People likely will buy less ice cream, less coffee
Answer:
c. Return on Assets
Explanation:
The net income usually has an impact of interest expense since interest expense is deducted from earnings before interest and tax in arriving at net income.
Hence, in order to take out the impact interest expense when computing return on assets, an adjusted net income known as de-levered net income is computed using the below formula:
Net Income + (1-t)xInterestExpense
Answer: The service cost component of a defined benefit pension plan is computed as the: <em><u>Present value of the change in pension liability from additional employee service. </u></em>
The service cost of a defined benefit pension plan is the change in the pension liability caused by one additional year of employee service. Also an expected return on pension plan assets does not cause an increase in the pension expense for a defined benefit plan.
