Which of the Following Are Examples of Formal Contracts

question 47

Multiple Choice

Which of the following are examples of formal contracts?

• A) Contracts under seal, but not executed contracts or letters of credit.
• B) Executed contracts, but not contracts under seal or letters of credit.
• C) Letters of credit and contracts under seal, but not executed contracts.
• D) Contracts under seal and letters of credit, but not executory contracts
• E) Contracts under seal, letters of credit, and executed contracts.

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Definitions:

Temporal Discounting

The tendency for people to value immediate rewards more highly than future rewards, often leading to impulsive decisions.

Risk Aversion

The tendency to prefer certainty over uncertainty, characterized by a preference for safe options over risky ones.

Certainty Effect

The psychological phenomenon where people tend to give greater weight to outcomes that are certain, compared to outcomes that are probable.

Liquidate Resources

Refers to the process of converting assets or resources into cash or cash equivalents by selling them in the market.