How Does a Sale Differ from a Contract to Sell

question 44

Multiple Choice

How does a sale differ from a contract to sell?

• A)Cash must change hands for a contract to sell to exist.
• B)The UCC defines a sale and a contract to sell as synonymous.
• C)A sale is made when the salesperson makes an offer and receives unqualified acceptance.
• D)The title must change hands for a contract to sell to exist.
• E)A contract to sell exists anytime a salesperson makes an offer and receives unqualified acceptance from the customer.

---

Definitions:

Limited Liability Company

A business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation.

Partnership

An authorized business structure where two or more partners manage and share in the profits.

Amount Owed

The total money that is due to be paid to a lender or creditor by the borrower.

Accounting Equation

The fundamental principle of accounting that states assets are equal to the sum of liabilities and owner's equity.