The Key Difference Between a Forward and a Futures Contract

question 89

Multiple Choice

The key difference between a forward and a futures contract is:

• A) a forward contract is customized where a futures contract is not.
• B) a forward contract is bought and sold on organized exchanges.
• C) only the forward contracts have settlement dates.
• D) the amount of time involved.

Understand the implications of depreciation and amortization on financial statements.

Recognize the financial statement impact of incorrect treatment of expenditures related to depreciable assets.

Identify the geographic and environmental issues in specific regions.

Understand the global impact of North America's solid waste production.

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Definitions:

Liability for Negligence

The legal responsibility that arises when someone fails to exercise a reasonable standard of care, resulting in harm or damage.

Substantial Performance

Substantial performance is a legal principle indicating that if a party has performed enough of its contract obligations, it can demand payment or compensation, minus deductions for unfinished or incorrect work.

Breach of Contract

A breach of contract occurs when one party fails to fulfill its obligations under the contract, thereby violating the agreement.

Punitive Damages

Monetary compensation awarded to an aggrieved party that goes beyond what is necessary to compensate for losses, intended to punish the wrongdoer.