You Have to Pay Costs for Your Business Now,but You

question 116

Multiple Choice

You have to pay costs for your business now,but you also have to enter into contracts to pay wages and supply costs in the future.If inflation occurs,the best term for the problem that arises in this case is

• A) menu costs.
• B) price confusion.
• C) future price uncertainty.
• D) deflationary price pressures.
• E) present value/future value uncertainty.

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Definitions:

Unaddressed Envelope

An envelope lacking a specific destination address, often used for general mail distribution or marketing purposes.

Promissory Estoppel

A legal principle that prevents a party from withdrawing a promise made to a second party if the latter has reasonably relied on that promise to their detriment.

Foreclose

The legal process by which a lender attempts to recover the balance of a loan from a borrower who has stopped making payments to the lender by forcing the sale of the asset used as the collateral for the loan.

Consideration

The value (such as money, goods, or services) that is exchanged between parties in a contract.