Robex Retail Forms a Contract with One of Its Suppliers

question 62

Multiple Choice

Robex Retail forms a contract with one of its suppliers to buy specific amounts of agricultural produce at a later date.This contract is an example of a(n) ________.

• A) financial future
• B) put option
• C) credit derivative
• D) call option
• E) commodities future

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Definitions:

Dissociates

In a legal context, refers to a partner's withdrawal or a member's departure from a partnership or an association, affecting the entity's composition.

Novation Agreement

A legal contract that creates a new obligation to replace an existing one, with the agreement of all parties involved.

Statement of Dissociation

A formal declaration that a partner is no longer associated with a partnership's activities.

Limited Liability Partnership

A business structure that protects its partners from personal liability for certain partnership debts and obligations.