In Many Cases, an Entity May Have an Implicit Obligation

question 219

Multiple Choice

In many cases, an entity may have an implicit obligation even if it is not explicitly noted in a sales contract.This is called a(n)

• A)onerous obligation.
• B)legal obligation.
• C)constructive obligation.
• D)earnings obligation.

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Definitions:

Labor Market

The supply and demand for labor, where employers find employees and individuals find jobs.

Compensating Differentials

Variation in wages that arises to offset the desirability or undesirability of a job or the costs and benefits of working in different locations.

Less Pleasant

A subjective assessment indicating that something is not as enjoyable or agreeable as other options or experiences.

Compensating Differentials

Wage differences across jobs that reflect the desirable or undesirable aspects of different jobs, aiming to compensate workers for job attributes like risk or undesirable hours.