Which of the Following Will Be Considered as a Valid

question 25

Multiple Choice

Which of the following will be considered as a valid consideration for a contract?

• A) The consideration is not bargained for.
• B) The party giving the consideration does not suffer a legal detriment.
• C) The party receiving the consideration receives a legal benefit.
• D) The consideration is not exchanged between the parties.

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Definitions:

Net Operating Income

A company's income after operating expenses are deducted, but before income taxes and interest expenses are subtracted.

Flexible Budget

A budget that adjusts or varies with changes in the volume or activity level of a company.

Units

Measurements or quantities of a product or service, often used as a basis for transactions and inventory.

Budgeting Formulas

Mathematical expressions or equations used in the process of allocating resources and planning for future financial activities.