The Title of a Contract Should Be

question 1

Multiple Choice

The title of a contract should be:

• A) general, like "Memorandum of Agreement.".
• B) written like a sentence, with only the first letter capitalized.
• C) short -- no more than five words.
• D) descriptive of the agreement, and typed in all capital letters.

---

Definitions:

Uncertainty

A lack of definite knowledge or predictability about outcomes, often factored into decision-making and risk assessments.

Present Value Index

An index computed by dividing the total present value of the net cash flow to be received from a proposed capital investment by the amount to be invested.

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period of time, used in capital budgeting to assess the profitability of investments.

Capital Investment

Funds invested in a firm or enterprise for the purpose of furthering its business objectives, including purchase of physical goods or investment in projects.