Answer: Disclose the gain contingency in the notes only
Mr Ralston’s action didn't constitute a contract in this case,since he hasn't taken the goods away and the groceries haven't been tallied.
<h3>What is a contract?</h3>
It should be noted that a contract simply means an agreement between private parties that's enforceable by law.
In this case, Ralston’s action didn't constitute a contract in this case,since he hasn't taken the goods away and the groceries haven't been tallied.
The features of a contract that should be taken into consideration include acceptance and internation to create legal relations.
The supervisor would not likely succeed should he proceed with legal action.
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Answer: A, B & C
Explanation:
Bonds generate a stable and constant cashflow for the holders and are not as risky as stock because bond holders at the very least are some of the people who will get priority in any monies raised if the company goes into liquidation. Bonds are debt so their interest are paid first from company revenue regardless of if profits were made or not further reinforcing that they are better than stock in terms of risk.
As mentioned in the text, bonds had flooded the market due to the low interest rates that the Fed kept. This is indeed because in a low interest rate environment, companies can offer bonds at lower coupon rates which reduces their cost of borrowing.
When the stock market is turbulent, the Fixed Income(bonds) market are a known safe haven that investors flee to because here they can earn stable incomes with less risk and because of the increase in demand, companies offer bonds and at lower rates too due to the Law of Supply.
That they might have to buy an ceiling that clean the flu.
