When the Opportunity Cost of Lost Revenue Is Relatively High

question 1

Multiple Choice

When the opportunity cost of lost revenue is relatively high, _____ become(s) relatively more attractive.

• A)layoffs
• B)back orders
• C)excess capacity
• D)disaggregation
• E)minimal inventory

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Definitions:

Statute of Frauds

A legal principle that requires certain types of contracts to be in writing and signed to be enforceable.

Parol Evidence Rule

A legal principle in contract law that prevents parties from presenting extrinsic evidence of prior or contemporaneous negotiations to alter or contradict the terms of a written agreement.

Condition Precedent

refers to a condition or event that must occur before a contract becomes effective or before a party is obligated to perform their contractual duties.

Parol Evidence Rule

A principle in contract law that prevents parties from presenting extrinsic evidence that would contradict, modify, or vary the terms of a written contract.