For the Consideration Requirement in Contracts to Be Met

question 90

Multiple Choice

For the consideration requirement in contracts to be met:

• A)the consideration given by each party must be of roughly equal value.
• B)each party must give consideration.
• C)the consideration must have monetary value.
• D)the consideration must consist of some form of property.

Distinguish between relevant and irrelevant costs in project evaluation, including understanding sunk and opportunity costs.

Identify the elements necessary for initial outlay and working capital considerations in project analysis.

Comprehend the application of basic capital budgeting principles, such as the treatment of financing costs and tax implications.

Appreciate the complexity of estimating cash flows and the errors prone to this process.

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Definitions:

Sellers

Individuals or entities that offer goods or services for sale to potential buyers.

Price Ceiling

A government-imposed maximum price that can be charged for a good or service, intentionally set below the market equilibrium to protect consumers.

Shortage

A situation in which the demand for a good or service exceeds its supply in a market.

Price Floor

A minimum price set by the government or a regulatory body, below which a particular good or service cannot legally be sold.