An Offeror Is Entitled to Revoke Their Offer Even Where

question 33

Multiple Choice

An offeror is entitled to revoke their offer even where they have promised to keep the offer open for a specified period.An important exception to this rule is where:

• A)the offeree will suffer loss if the offer is revoked.
• B)the offeree has provided consideration for the offeror's promise to keep the offer open.
• C)no other person has expressed an interest in accepting the offer.
• D)the offeree has changed their position in reliance on the offeror's promise.

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Definitions:

Stock Options

Financial instruments that give an employee the right to buy or sell the company's stock at a predetermined price within a specific period.

Scanlon Plan

A participative management approach that focuses on improving productivity and sharing the resulting cost savings with employees.

Collective Stock Options

A form of employee incentive where groups of workers are granted options to buy company stock at a discounted price.

Profit-Sharing Plan

A company program that gives employees a share in the company’s profits based on its quarterly or annual earnings, serving as a tool to motivate and reward employees.