Which of the Following Is a Characteristic of an Implicit

question 4

Multiple Choice

Which of the following is a characteristic of an implicit contract?

• A)It is an understanding between parties in a business relationship
• B)It is generally enforceable in court
• C)The threat of losing future business makes implicit contracts not viable
• D)They are typically used in firms that have little relationship with one another
• E)It is an alternative agreement method to the Keiretsu understandings between members

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Definitions:

Differential Cost

The cost difference between two alternative decisions.

Model 240

A specific version or design of a product, indicated by the model number 240.

Incremental Manufacturing Cost

The additional cost incurred by producing one more unit of a product.

Production Increase

An uptick in the amount of products manufactured by a company over a set period.