Which of the Following Is NOT True About Consideration

question 41

Multiple Choice

Which of the following is NOT true about consideration?

• A)Consideration must be of some value in the eyes of the law.
• B)A gratuitous promise is not supported by consideration.
• C)Consideration has to be adequate.
• D)Consideration must be sufficient.
• E)Consideration can be in the form of a detriment to a party.

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Definitions:

Required Return

The minimum return an investor expects to achieve on an investment, considering its risk level.

Internal Rate of Return

A financial metric used to gauge the profitability of potential investments.

NPV

An evaluation metric used to estimate the profitability of an investment or project by calculating the difference between the present value of cash inflows and outflows.

Capital Budgeting Analysis

The process of evaluating and selecting long-term investments that are in line with the goal of shareholder wealth maximization.