This Occurs When a Party Takes Action in Reliance on the Promise

question 15

Multiple Choice

This occurs when a party takes action in reliance on the promise of another, who then breaks that promise.

• A)promissory estoppel
• B)intentional interference with a contractual relationship
• C)retaliation for an act supporting public policy
• D)constructive discharge

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Definitions:

Bond Maturity

The date on which a bond's principal amount is paid back to bondholders, also marking the end of the bond's interest payments.

Bond Discount

The difference between the face value of a bond and its selling price when the bond is sold for less than its face value.

Impairment Loss

The amount by which the carrying value of an asset exceeds its recoverable amount, leading to a reduction in the asset's value on the balance sheet.

Realized Profit

Earnings that are generated and recorded when assets are sold for a price higher than their purchase cost.