Duress Occurs When

question 8

Multiple Choice

Duress occurs when

• A)the enforcement of a contract results in unconscionability.
• B)an improper threat is made to force another party to enter into a contract.
• C)both parties contract based on the same factual error.
• D)a party gives notice of refusal to be bound by an agreement.

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Definitions:

Paying Wages

The process of compensating employees for their labor, typically calculated by the hour, day, or based on output.

Cash Outflow

Money that is spent or transferred out of a business, reducing its cash balance.

Cash Equivalents

Short-term, highly liquid investments such as Treasury bills, commercial paper, and money market funds, that are made solely for the purpose of generating a return on temporarily idle funds.

Statement of Cash Flows

A financial statement that provides aggregate data regarding all cash inflows a company receives from its ongoing operations and external investment sources, as well as all cash outflows that pay for business activities and investments during a given period.