Simone Offers Thom a Dozen Piano Lessons for a Certain

question 6

Multiple Choice

Simone offers Thom a dozen piano lessons for a certain price per lesson but conditions the deal on Thom accepting the offer by April 1. Simone may revoke the offer

• A) ​before Thom accepts the offer.
• B) ​before April 1, whether or not Thom has accepted the offer.
• C) ​only after Thom accepts the offer.
• D) ​only after April 1.

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Definitions:

Obligations

Duties or responsibilities imposed by legal or ethical requirements, contracts, or agreements.

LBO

Leveraged buyout. A process in which an investor group buys up a company’s stock using a small amount of equity and borrowing the rest of the money required. The debt is often secured by the firm’s assets. The investor groups are often the firms’ managements, and the company goes from being publicly held to being privately held.

Takeover

The acquisition of one company by another where the acquiring party secures control of the target company.

Merger

The combination of two or more companies into a single entity, often with the goal of achieving operational synergies or market growth.