Which of the Following Statements Is Definitely True Regarding an Option

question 27

Multiple Choice

Which of the following statements is definitely true regarding an option contract?

• A) It is also known as a quasi contract.
• B) It is created when the parties enter into the agreement by their actions rather than because they have actually discussed the matter.
• C) It lacks mutual assent.
• D) An option contract only buys the offeree time to accept or reject the offer.

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Definitions:

Status Quo

The existing state of affairs or conditions, often used in context to suggest a resistance to change.

Refreezing

The process of stabilizing a group or organization after a change has been implemented, ensuring the new state becomes the norm.

Lewin's Basic Change Model

A three-step model (unfreezing, changing, refreezing) for implementing change within an organization, proposed by Kurt Lewin.

Reward Systems

Mechanisms or programs implemented by organizations to recognize and reward employees' performance and achievements.