Which of the Following Is NOT True of the Contra

question 34

Multiple Choice

Which of the following is NOT true of the contra proferentum rule?

• A) It attributes to a term the meaning least favourable to its author.
• B) It is a rule of contractual interpretation.
• C) It provides an incentive for the author of a term to draft it in clear and unambiguous language.
• D) It is always the best means of resolving an ambiguous term.
• E) none of the above statements are true.

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Definitions:

Break-Even

Break-even is the point at which total costs and total revenue are equal, resulting in no net loss or gain.

Seed Division

A segment within a business or organization that focuses on developing new ideas, projects, or business lines from their initial stages.

Fixed Expenses

Costs that do not change with the level of production or sales within a certain range, such as rent and salaries.

Absorption Costing

An accounting method that includes all direct and indirect manufacturing costs in the cost of a product.