Which of the Following Types of Contracts Does Not Fall

question 57

Multiple Choice

Which of the following types of contracts does not fall within the statute of frauds?

• A)Contracts not performed within six months
• B)Promises made in consideration of marriage
• C)Contracts for one party to pay the debt of another party if the initial party fails to pay
• D)Agreements related to an interest in land
• E)Contracts for the sale of goods totaling more than $500

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Definitions:

Net Present Value

A method of valuing a series of future cash flows by discounting them back to their present value using a specified rate of return.

Working Capital

Working Capital is the difference between a company's current assets and current liabilities, indicating short-term financial health.

Discount Rate

This refers to the rate used in discounted cash flow assessments to figure out the current value of cash flows expected in the future.

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period of time, used in capital budgeting to assess the profitability of investments.