What Phrase Explains How a Requirements Contract Can Be Valid

question 36

Multiple Choice

What phrase explains how a requirements contract can be valid?

• A)"will buy 100 percent of output"
• B)"willing to accept the entire quantity"
• C)"no consideration needed"
• D)"in good faith"

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Definitions:

Equity Method

An accounting technique used to record investments where the investor has significant influence but does not control the investee.

Net Income

The remaining earnings of a company after subtracting total expenses and taxes from its gross revenue.

Dividends

Payments made by a corporation to its shareholders, usually out of profits or reserves.

Net Income

The total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue; a key indicator of financial health.