Which of the Following Is True Regarding the Consummation of a Deal

question 51

Multiple Choice

Which of the following is true regarding the consummation of a deal?

• A) verbal agreements are considered binding
• B) written confirmations always override terms verbally agreed to
• C) deals agreed to verbally can be done subject to documentation
• D) verbal agreements are never to be considered legally binding

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Definitions:

Profitability Index

A ratio that calculates the relative profitability of an investment by dividing the present value of future expected cash flows by the initial investment cost.

Initial Investment

The amount of money used to start a project, investment, or business.

Cash Inflows

Funds entering a business from various sources, including sales, investments, and financing activities, critical for maintaining liquidity.

Payback Period

The time it takes for an investment to generate an amount of income or cash equivalent to the cost of the investment.