A Contract That Binds the Offeror to Keep an Offer

question 69

Multiple Choice

A contract that binds the offeror to keep an offer open for a specified period of time is known as:

• A) a offer with reserve.
• B) an option.
• C) promissory estoppel.
• D) a unilateral contract.

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Definitions:

Gross Margin Ratio

A financial metric that measures the proportion of money left over from revenues after accounting for the cost of goods sold, expressed as a percentage of sales revenue.

Net Sales

The total revenue from sales transactions after subtracting returns, allowances for damaged or missing goods, and any discounts offered.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including materials, labor, and overhead costs.

Net Income

The final amount of profit made by a company once it subtracts all costs and taxes from its overall revenues.