Use the Following to Answer Question

question 71

Multiple Choice

Use the following to answer question:
Figure 6.10
-(Figure 6.10) Which of the following statements is (are) TRUE?

• A) II and III
• B) III
• C) I and III
• D) I and II

Identify the effects of counter-offers, inquiries, revocations, and acceptances on the validity of an offer.

Analyze the importance of capacity, consideration, and intention in forming a contract.

Comprehend the significance and application of the postbox rule in contract law.

Recognize the implications of specific contract law cases and their contributions to the understanding of contract principles.

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Definitions:

Receivables Ratio

The Receivables Ratio, also known as the Accounts Receivable Turnover Ratio, measures how efficiently a company collects cash from its customers by comparing sales to the average receivables.

Outstanding Accounts

Accounts or invoices that have been billed but not yet paid by customers.

EBIT

Earnings Before Interest and Taxes, a financial metric indicating a company's operating profitability by excluding interest and taxes from earnings.

Interest Expense

The cost incurred by an entity for borrowed funds; interest expenses are a non-operational cost affecting the company’s net income.