Consideration Is the Element of a Contract That

question 51

Multiple Choice

Consideration is the element of a contract that:

• A) allows it to be a gift
• B) prevents it from being a gift
• C) gives the offeror a better deal
• D) gives the offeree a better deal
• E) provides the terms of contract execution

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Definitions:

Related Party Disclosures

Financial reporting requirements that mandate entities to disclose transactions and relationships between the reporting entity and its related parties.

Control

In the context of financial reporting, control refers to the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

Shareholding

The ownership interest represented by holding shares of stock in a company.

Subsidiaries

Companies that are controlled by another company, known as the parent company, through the ownership of more than half of their voting stock or through other control mechanisms.