An Offer May Be Revoked Before It Is Accepted

question 13

Multiple Choice

An offer may be revoked before it is accepted. To be valid, a revocation must

• A) be subject to a condition.
• B) be exclusive.
• C) be communicated to the offeree before acceptance.
• D) be loud and clear.
• E) be promised.

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Definitions:

Expected Utility

The anticipated value of an outcome, calculated by multiplying the utility of the outcome by the probability of its occurrence.

Risk-averse

Characterized by the preference to avoid risk, leading individuals or entities to choose the option with the least risk when faced with uncertain outcomes.

Expected Utility

A theory in economics that calculates the anticipated utility or satisfaction from a decision under conditions of uncertainty.

Utility

An indicator of pleasure or contentment obtained by customers from using products or services.