Which of the Following Statements Is Not True Concerning Consideration

question 75

Multiple Choice

Which of the following statements is not true concerning consideration?

• A)Consideration need not be adequate
• B)Consideration must be sufficient
• C)A promise may still be enforceable in the absence of consideration if the requirements of promissory estoppel are satisfied
• D)The price paid for a promise must be a fair price

---

Definitions:

Fair Value Method

An accounting approach used to assess and assign a value to assets or liabilities based on current market prices or the estimated prices of similar transactions.

Net Income

The conclusive income of a corporation post all deductions for costs and taxes from its aggregate revenue.

Dividends

A share of profits paid out to shareholders by a corporation, usually in cash or in the form of more shares.

Trading Securities

These are securities that a company holds primarily with the intention of trading them in the short term to profit from price fluctuations.