A Constructive Obligation Arises When

question 215

Multiple Choice

A constructive obligation arises when

• A)the entity is legally obligated to honour the obligation.
• B)the entity makes an unconditional promise to pay money in the future.
• C)past or present company practice reveals the entity acknowledges a potential economic
• Burden.
• D)the entity has a conditional obligation which becomes unconditional if an uncertain future
• Event occurs.

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Definitions:

Inferiority Complex

A psychological condition where an individual feels a deep sense of inadequacy and lack of worth compared to others.

Childhood

The period in a human life from birth through adolescence, characterized by growth, learning, and development.

Athletic Ability

The capacity to perform various physical tasks or sports at a high level, often encompassing strength, agility, stamina, and coordination.

Needs-Hierarchy Theory

A motivational theory in psychology proposed by Abraham Maslow, which suggests that needs exist in a hierarchy from basic physical needs to self-actualization.