A(n)________ Is Created When Two Parties Enter into a Contract

question 68

Multiple Choice

A(n) ________ is created when two parties enter into a contract with the intended purpose of benefiting a third party.

• A)third-party beneficiary contract
• B)accord and satisfaction
• C)novation
• D)assignment
• E)delegation

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Definitions:

Trust Receipt

A document that acknowledges the receipt of goods by a person who is borrowing funds from a lender with the goods as collateral, with an agreement to pay the lender back upon the sale of the goods.

Cash Cycle

Also known as the cash conversion cycle, it measures the time it takes for a company to turn its inventory into cash flows from sales.

Accounts Payable Period

The Accounts Payable Period is the average time it takes for a business to pay off its creditors, indicating the efficiency of its payment process.

Use Of Cash

Describes how a business or individual allocates cash resources for various purposes.