The Five Basic Principles of Finance Include All of the Following

question 1

Multiple Choice

The five basic principles of finance include all of the following EXCEPT

• A) Cash flow is what matters.
• B) Money has a time value.
• C) Risk requires a reward.
• D) Incremental profits determine value.

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Definitions:

Unilateral

A mistake that is the result of an error by one party about a material fact, that is, a fact that is important in the context of the particular contract.

Offeror

An entity or person who puts forth a proposal or bid for a contract, indicating a willingness to enter into an agreement under specified terms.

Consideration

Something of value (such as money, services, or goods) that is exchanged between parties in a contract, making the agreement legally binding.

Offer and Acceptance

Fundamental principles in contract law where an offer proposal is made by one party and accepted by another, resulting in a legally binding agreement.