The Rule That Doing or Promising to Do What One

question 14

Multiple Choice

The rule that doing or promising to do what one is already legally bound to do is not consideration applies to a part payment made in satisfaction of a(n) __________ debt.

• A) unliquidated
• B) superfluous
• C) non-superfluous
• D) liquidated

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Definitions:

Cycle Inventory

Inventory that is held to manage the normal fluctuation of production or supply and demand, rotating through cycles of replenishment.

Safety Inventory

Extra stock kept in storage to guard against uncertainty in demand or supply, ensuring product availability.

Seasonal Inventory

Inventory that is purchased or produced in anticipation of season-based demand increases, such as holiday merchandise.

Strategic Fit

The alignment between an organization's strategies, resources, and capabilities with its external environment to achieve long-term objectives.