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What Are the Five Criteria That Must Be Met for a Contract

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What are the five criteria that must be met for a contract with a customer to exist?


Definitions:

Investment Potential

This refers to the likelihood or capacity for an investment to grow in value, offering returns to the investor.

Discounted Present Value

Discounted present value is a financial calculation that determines the current worth of a future sum of money or stream of cash flows, given a specified rate of return.

Financial Attribute

Characteristics or information pertaining to financial entities, transactions, or instruments that can be measured or identified, such as price, yield, risk, or returns.

Dividends

Payments made by a corporation to its shareholder members, usually derived from profits.

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