Robert and John Entered into a Bilateral Contract

question 21

True/False

Robert and John entered into a bilateral contract.If they agree to a rescission of the contract while it is executory, there is a lack of consideration for the rescission.

Understand how changes in market interest rates influence investment decisions by firms.

Comprehend the criterion for firms to undertake investment projects based on the present value of the income stream versus the cost.

Recognize the role of expected rate of return in investment choices and how it compares with interest rates.

Learn how certainty and uncertainty in the market impact investment spending.

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Definitions:

Increase Compensation

The act of raising the salary or overall remuneration package of employees to meet market standards, reward performance, or address inflation.

Expectancy Theory

This is a motivational theory in psychology that proposes an individual's behavior is determined by their anticipated outcomes or rewards.

Instrumentality

The belief that a particular action will lead to a particular outcome, emphasizing the means-end relationship in motivation theories.

Valence

The perceived value or desirability of a reward or outcome, influencing motivation and goal-directed behavior.