In What Way Are a Contractual Promise and a Contractual

question 42

Multiple Choice

In what way are a contractual promise and a contractual obligation similar?

• A) Both must be adequate to be enforceable.
• B) Both represent a pre-existing duty.
• C) Both may be arbitrarily revoked.
• D) Both must be present for validity.

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Definitions:

Business Credibility

The perception of a business as trustworthy and reliable, often built over time through consistent delivery of quality products or services.

Lending Decision

The process by which a lender evaluates the risk and potential of a loan application before granting funds to the borrower.

Net Profit

The total revenue of a company after subtracting all costs and expenses, including taxes and operational expenses.

Total Assets

The combined value of all resources owned by a company, including cash, investments, property, and equipment.