If Economic Conditions Become Less Favorable, Then

question 39

Multiple Choice

If economic conditions become less favorable, then:

• A) expected cash flows on various projects will increase.
• B) more proposed projects will have expected returns greater than the hurdle rate.
• C) there would be additional acceptable business projects.
• D) there would be a decreased demand by business for loanable funds.

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Definitions:

Promise

An assurance given by one party to another agreeing to do or not do something in the future.

Agreement in Principle

An initial acceptance indicating a preliminary agreement before the details are finalized.

Binding Contract

An agreement between two or more parties that is legally enforceable in a court of law.

Verbal

Pertaining to words or spoken communication, often used in the context of agreements or contracts.