Gratuitous Promises Are Made Without Consideration

question 26

True/False

Gratuitous promises are made without consideration.

Master the art of strategically ordering multiple questions and responses in business communication for enhanced reader comprehension.

Understand how to effectively manage and respond to delayed or vague orders.

Learn the structure and planning for crafting routine inquiry messages.

Comprehend the guidelines for granting adjustments and handling customer complaints.

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Definitions:

Explicit Costs

These are the direct, clear expenses related to business operations, such as salaries, utilities, and rent, that are easily quantifiable.

Accounting Profit

The difference between the total revenue and explicit costs of a firm, not accounting for implicit costs.

Economic Profit

The variance between a company's overall incomes and its combined explicit and implicit expenses.

Implicit Costs

The opportunity costs of using resources owned by the firm for its operations instead of renting, selling, or utilizing them in other ways.