What Kind of Document Serves as a Legally Binding Contract

question 13

Multiple Choice

What kind of document serves as a legally binding contract or part of a contract that defines, in plain language and in measurable terms, the aspects of a service provided to a customer?

• A) statement of work
• B) memorandum of understanding
• C) service-level agreement
• D) master service agreement

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Definitions:

Preparation Sequencing

The organized planning and arrangement of tasks or activities to achieve a desired goal or outcome.

Budgeted Balance Sheet

A projection of a company's financial position at a specific future date, based on expected income, expenses, and changes in assets and liabilities.

Sales Budget

A financial plan that estimates future sales, either in units or monetary value, over a specific period, aiding management in decision-making and resource allocation.

Cash Balance

The amount of cash or cash equivalents a company or individual holds, reflecting the liquidity available for use.