For an Offer to Be Valid

question 66

Multiple Choice

For an offer to be valid:

• A) the offeree must have knowledge of the offer.
• B) the offeree must have first-hand knowledge of the offer.
• C) the offer must be stated or communicated by words.
• D) the offer must be made by the offeror.

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Definitions:

Preferred Stock

A class of stock that typically offers dividends and claim on assets before common stockholders but usually does not have voting rights.

Common Stock

A form of corporate equity ownership, a type of security representing an ownership interest in a corporation.

Capital Stock

The total amount of shares that a company is authorized to issue, representing the main source of equity for the company.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, often with fixed dividend payments.