Which of the Following Is a Characteristic of an Implicit

question 4

Multiple Choice

Which of the following is a characteristic of an implicit contract?

• A)It is an understanding between parties in a business relationship
• B)It is generally enforceable in court
• C)The threat of losing future business makes implicit contracts not viable
• D)They are typically used in firms that have little relationship with one another
• E)It is an alternative agreement method to the Keiretsu understandings between members

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Definitions:

Intangible Assets

Assets that lack physical substance but possess value, such as patents, trademarks, and goodwill.

Research And Development

The investigative activities a business conducts to improve existing products and procedures or to lead to the development of new products and procedures.

Amortization

The process of spreading out a loan's payments over time, often relating to intangible assets as well.

Boot

A non-cash item given or received in a transaction to even out the value exchange, commonly used in the context of trade or real estate deals.