Which of the Following Is an Objective Standard Based on Reasonableness

question 93

Multiple Choice

Which of the following is an objective standard based on reasonableness in a contract against which actions are measured to determine sufficiency?

• A)Beyond a reasonable doubt
• B)Reasonable person standard
• C)Personal satisfaction standard
• D)Tender of reasonable performance
• E)Strict standard of performance

Apply sensitivity analysis to assess the impact of variable changes on project NPV.

Identify the importance of operating leverage and its effect on project risk.

Distinguish between fixed costs and variable costs in a business context.

Assess the options to expand, abandon, or suspend a project based on financial analysis.

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Definitions:

Option To Return

A contractual right allowing one party to return a product, asset, or property to the other party under specified conditions.

Risk

The exposure to danger, harm, or loss, whether physical, financial, or emotional, arising from uncertain or unforeseeable events.

Buyer

An individual or entity that makes a purchase or agrees to purchase goods or services.

"On Approval"

A transaction condition allowing a buyer to take merchandise home for a trial period before making a final purchase decision.