Why Is Past Consideration Not a Consideration in a Present

question 49

Multiple Choice

Why is past consideration not a consideration in a present promise?

• A) It falls under exceptions to consideration.
• B) It does not pertain to the present exchange.
• C) It is not covered under the UCC codes for consideration.
• D) It involves an issue of moral obligation.

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Definitions:

Unusually Risky

Describes investments or actions that carry a higher than normal level of risk, often due to uncertain outcomes or volatile conditions.

IRRs

The Internal Rate of Return is a measurement used in the process of capital budgeting to assess the potential profitability of investments.

Cost of Capital

The rate of return a company must earn on its investment projects to maintain its market value and satisfy its shareholders and creditors.

Capital Budgeting

The approach taken by a business to appraise potential key projects or investments.