An Executory Contract Is Defined As

question 4

Multiple Choice

An executory contract is defined as:

• A)a contract that may be set aside or avoided by one of the parties.
• B)a contract where the terms of the agreement are specified in words.
• C)a contract that is required to be created in a special form or manner of creation.
• D)a contract in which the terms have not been fully carried out by all parties.

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Definitions:

Economic Costs

The total cost of production, including both explicit costs like wages and materials and implicit costs such as opportunity costs.

Accounting Profit

The total revenue of a business minus the explicit costs associated with that revenue, calculated using generally accepted accounting principles (GAAP).

Long Run

A period of time in economics during which all factors of production and costs are variable, allowing for full adjustment to changes.

Short Run

In economics, a period during which at least one of a firm's inputs is fixed and cannot be changed.