A(n)____ Can Be Formed by Two or More Parties That

question 11

Multiple Choice

A(n) ____ can be formed by two or more parties that act as if a contract exists, even if no contract has been written and signed.

• A)offer
• B)implied contract
• C)subordinate contract
• D)virtual contract

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Definitions:

Working Capital

The difference between a company's current assets and current liabilities, indicating the available short-term resources to fund operations.

Income Tax Rate

The percentage of an individual or company's income that is paid to the government as tax.

After-Tax Discount Rate

The discount rate used in capital budgeting that accounts for taxes and reflects the net cost of borrowing and the opportunity cost of investing.

Straight-Line Depreciation

A method of calculating depreciation of an asset, where the expense is evenly spread over its useful life.