Privity Is a Direct Contractual Relationship Between a Promisor and Promisee

question 1

True/False

Privity is a direct contractual relationship between a promisor and promisee.

---

Definitions:

Merchandising Firms

Businesses that purchase goods in a finished condition and sell them with little to no processing.

Managerial Accounting Information

Financial data analyzed for internal decision making, focusing on detailed reporting for managers' specific needs.

Stockholders

Individuals or entities that own shares in a corporation, giving them ownership interest.

Creditors

Individuals or institutions that lend money or extend credit, and are thus owed repayment by the borrower or debtor.