Which of the Following Statements Is True of Consideration

question 1

Multiple Choice

Which of the following statements is true of consideration?

• A) Consideration always has a monetary value regardless of a legal value.
• B) A promisee can be enforced by the courts to keep his or her promise.
• C) Consideration enforces gratuitous promises.
• D) A promisee's consideration may be an act or a promise.

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Definitions:

Purchase Method

An accounting method used to consolidate the financial statements of a parent company and its subsidiaries, reflecting the purchase of one entity by another.

Statutory Consolidation

The process of combining the financial statements of a group of companies into one, as required by law, to present the financial condition and operations of the group as a single entity.

Legal Corporations

Business entities that are legally recognized as individual entities with rights and liabilities distinct from those of their members or shareholders.

Divisions

Separate units or branches within a company or organization, often specializing in different products or services.