Which of the Following Is True with Regard to Contract

question 114

Multiple Choice

Which of the following is true with regard to contract law?

• A)An option is a contract in which one person is buying a period of time within which he may accept the offer contained within the option.
• B)A newspaper notice offering to pay a reward for the return of lost kittens is an invitation to treat.
• C)A revocation is effective only when sent.
• D)An important criterion for determining the place of the contract is the place where the offer is mailed.
• E)A counter-offer does not end an offer.

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Definitions:

Antitakeover Strategies

Measures employed by a company to prevent or deter unwanted takeover bids, such as poison pills or golden parachutes.

Derivatives Markets

Markets where financial instruments, whose value is derived from other assets, are traded. These include futures, options, and swaps.

Transferring Risk

Shifting potential financial loss to another party through mechanisms like insurance, hedging, or outsourcing, to manage vulnerability to risk.

Investing

The process of distributing funds or resources with the aim of earning a return or profit.