Composition Agreements Are

question 37

Multiple Choice

Composition agreements are:

• A)made in a way that allows the promisor to decide whether or not to perform the promise.
• B)agreements between a debtor and two or more creditors who agree to accept a stated percentage of their liquidated claims against the debtor at or after the due date.
• C)agreements entered into when someone promises not to file a legal suit in exchange for a promise to pay a certain sum of money or some other consideration.
• D)agreements between a debtor and a creditor who agree to accept a stated percentage of their liquidated claims against the debtor after the due date.

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Definitions:

Spot Market

The Spot Market is a public financial market in which financial instruments or commodities are traded for immediate delivery.

Foreign Currency

The currency of another country, which is required for foreign trade and investment.

Hedge

An investment or action taken to reduce the risk of adverse price movements in an asset.

Exchange Rate Exposure

The potential for a company's profitability, net cash flow, and market value to change because of a change in exchange rates.