Which of the Following Is NOT One of the Requirements

question 16

Multiple Choice

Which of the following is NOT one of the requirements of a legal contract?

• A)Mutual agreement
• B)Both parties must possess legal capacity to assume contractual duties
• C)Each agrees not to cause harm or unreasonable risk to the other party
• D)Each must exchange something of legal value

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Definitions:

Total Asset Turnover

A financial ratio that measures a company’s efficiency in using its assets to generate revenue.

Net Sales

The revenue generated from goods or services sold by a business, minus returns, allowances for damaged or missing goods, and discounts.

Average Total Assets

The mean value of all assets owned by a company over a specific period, used to evaluate financial health and operational efficiency.

Current Ratio

A financial metric used to assess a company's ability to pay off its short-term liabilities with its short-term assets.