Which of the Following Can Be Consideration for a Promise

question 39

Multiple Choice

Which of the following can be consideration for a promise?

• A) refraining from beating one's spouse
• B) promising to refrain from beating one's spouse
• C) refraining from smoking cigarettes
• D) refraining from using cocaine

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Definitions:

Pre-tax Cost

This is the cost of an investment or financial activity before the application of taxes.

Cost of Equity

The return that investors expect for investing in a company's equity, often estimated using models like the Capital Asset Pricing Model (CAPM).

Weighted Average Cost

The combined cost of both variable and fixed goods, services, or sources of finance, weighted according to their proportions.

Bond Issues

The process of offering bonds to investors, which are debt securities constituting a loan to the issuer from the bondholder.