Which of the Following Is Correct with Regard to Consideration

question 9

Multiple Choice

Which of the following is correct with regard to consideration?

• A) In a unilateral contract, a promise is exchanged for an act or forbearance to act.
• B) In a bilateral contract, there is an exchange of promises.
• C) Legal sufficiency is always related to adequacy of consideration.
• D) Two of these are correct.

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Definitions:

Income Statement

A financial report that shows a company's revenues and expenses over a specific period, ultimately revealing the net profit or loss.

Property, Plant

Refers to the long-term assets owned by a company that are used in its operations, including land, buildings, and machinery.

Operating Activities

The day-to-day functions of a business related to producing and selling goods or services, which are reflected in the company's cash flow.

Cash Dividends

Payments made by a corporation to its shareholder members. It's the portion of corporate profits paid out to stockholders.