Which of the Following Is an Acceptable Consideration for a Contract

question 17

Multiple Choice

Which of the following is an acceptable consideration for a contract?

• A) arrest
• B) penalty
• C) money
• D) sentence

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Definitions:

Lease Term

The duration for which a lease agreement is effective, specifying the start and end dates.

Modified Accelerated Cost Recovery System

A tax depreciation system in the United States that allows for faster asset depreciation in the early years of asset life.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset evenly over its useful life, used for accounting and tax purposes.

Double Declining-Balance Depreciation

A method of accelerated depreciation which doubles the rate at which an asset’s book value depreciates compared to straight-line depreciation.