You and I Have Entered into a Contract for the Sale

question 75

Multiple Choice

You and I have entered into a contract for the sale of a boat.We have agreed that I will deliver possession of the vessel to you at the same time that you pay the purchase price of $10 000.You have the option of paying with either cash or a certified cheque.Which of the following statements is TRUE?

• A)You would prefer to pay with a cheque because $10 000 in cash does not easily fit into your pocket.
• B)You would prefer to pay with cash because cash is less risky than a cheque if a theft occurs.
• C)I would prefer to receive a cheque because it is more difficult for me to transfer cash to a stranger.
• D)I would prefer to receive cash because a certified cheque would not give me any rights against the drawee bank.
• E)Certification of a cheque would be relevant only if I intended to negotiate the cheque to someone other than a bank.

---

Definitions:

Government Ownership

Refers to assets and enterprises owned by the government or public authorities, intended for public benefit or strategic interests.

Short Run

A timeframe in economics where at least one factor of production is fixed, limiting immediate adjustments to changes in demand or supply.

Barriers To Entry

Economic or legislative obstacles that prevent new competitors from easily entering an industry or area of business.

Monopoly Power

The degree of power held by a singular entity to control prices or exclude competition within a market.