Which of the Following Statements Is True of Contracts

question 37

Multiple Choice

Which of the following statements is true of contracts?

• A)They are used only in case of standardized transactions.
• B)They protect a seller's investment in the transaction.
• C)They allow the concerned parties to benefit from short-term price fluctuations in the market.
• D)They reduce the impact of market risk on the transaction as well as economic value in the long run.

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Definitions:

Exchange

denotes the act of giving one thing and receiving another between parties, often in the context of goods, services, or information.

Compliance

The act of conforming to or following rules, standards, or laws, or the state of being in accordance with established guidelines or specifications.

Cooperation

The process of working together towards the same end or to accomplish a shared goal.

Structuring

The act of organizing or arranging various elements into a systematic or coherent layout or framework.