There Is No Contract Unless Each Party Intends to Create

question 29

True/False

There is no contract unless each party intends to create a legally enforceable contract.

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Definitions:

Capital Intensity Ratio

A measure of the amount of capital needed per dollar of revenue, indicating the level of investment required to sustain operations.

Fixed-Asset Utilization

Fixed-asset utilization is a measure of how efficiently a company is using its fixed assets, like plant, property, and equipment, to generate sales or revenue.

Internal Growth Rate

The maximum growth rate a company can achieve without needing to secure additional financing.

Working Capital Decision

Decisions that relate to managing the short-term assets and liabilities of a company, crucial for maintaining its operations and liquidity.