A Contract Can Be Formed

question 35

Multiple Choice

A contract can be formed:

• A) from an offer made in anger.
• B) from an offer made in jest.
• C) as a result of preliminary negotiations.
• D) as a result of an expression of opinion.
• E) A contract cannot be formed from an offer made in anger, from an offer made in jest, as a result of preliminary negotiations, or as a result of an expression of opinion.

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Definitions:

Times Interest Earned Ratio

A financial metric that measures a company's ability to cover its interest expenses with its earnings before interest and taxes.

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been deducted from total revenue.

Equity Multiplier

A financial leverage ratio that measures the portion of a company’s assets that is financed by stockholders' equity.

Total Liabilities

The combined amount of a company's short-term and long-term debts, representing claims against the company's assets by outsiders.