A Person, Who Is Not a Party to a Contract

question 18

Multiple Choice

A person, who is not a party to a contract but is intended by the contracting parties to benefit as a consequence of a contract, is termed a(n) :

• A) third party beneficiary.
• B) incidental beneficiary.
• C) official receiver.
• D) arbitrator.

---

Definitions:

Effective Cost Of Capital

The actual cost of a company's funding after adjusting for various factors, including tax benefits, associated with different sources of capital.

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a data set, providing a measure that reflects the significance of each value.

Specific Costs

Costs that can be directly attributed to a particular project, department, or activity.

Required Return

The minimum return that keeps an investor in a particular stock. Generally a function of the risk perceived in the investment.