James Says He Would Like to Buy Mike's Motorbike for $3,000

question 64

Multiple Choice

James says he would like to buy Mike's motorbike for $3,000. Mike responds by saying he would accept $4,000 given all the work he has put into it. James says "Ok. I'll give that. Here's $2,000 now, and I'll pay the balance in two installments."

• A) This is not a contract
• B) This is an acceptance
• C) This is a contract
• D) This is an offer

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Definitions:

Operating Income

The profit realized from a business's core operations before taxes and interest.

Net Cash Inflows

The amount of cash that a company receives minus the amount of cash it spends over a certain period.

Profitability Computed

Refers to the calculation of a company's earnings versus its expenses to determine financial performance.

Average Annual

Average annual typically refers to the mean amount or figure calculated over a year's period, often used in financial, operational, or performance metrics.