What Is the Legal Effect of a Counteroffer

question 26

Multiple Choice

What is the legal effect of a counteroffer?

• A)It destroys the original offer
• B)It imposes new terms into a contract:
• C)It is an act of repudiation of a contract
• D)It is an act of acceptance of an existing offer
• E)It creates a secondary offer

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Definitions:

Income Tax Rate

The percentage at which an individual or corporation is taxed; the rate may vary by income level, type of income, or other factors.

Working Capital

The distinction between a firm's current assets and its current liabilities, revealing the company's short-term financial health.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in equal installments.

Incremental Sales

Additional sales generated by a new promotional strategy or marketing campaign, beyond the expected or normal sales volume.