Which of the Following Is True of a Firm Offer

question 46

Multiple Choice

Which of the following is true of a firm offer?

• A)It occurs when parties intend to be bound by a contract,but fail to mention the price.
• B)It occurs when a seller agrees to sell all it can produce to a particular buyer.
• C)It occurs when a merchant promises to hold an offer open without any consideration.
• D)It occurs when a buyer agrees to buy all its requirements from a particular seller.

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Definitions:

Consolidated Balance Sheet

A financial statement combining all assets, liabilities, and equity of a parent company and its subsidiaries, presenting the financial position of the entire group.

Fair Values

A measure of the estimated market value of an asset or liability, based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction.

Consolidated Financial Statements

Financial statements that aggregate the financial information of a parent company and its subsidiaries into one comprehensive document.

Wholly Owned Subsidiaries

Companies whose entire share capital is 100% owned by another company, which gives the parent company full control over the subsidiary.