Which of the Following Is the First Element of a Contract

question 71

Multiple Choice

Which of the following is the first element of a contract?

• A)The agreement
• B)Contractual intent
• C)An invitation to negotiate
• D)Consideration
• E)A writing

---

Definitions:

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered or sold but not yet paid for.

Working Capital

The disparity between a firm's existing resources and its short-term obligations, showcasing its ability to fulfil financial commitments and operational prowess.

Current Assets

Resources anticipated to be transformed into cash, sold off, or used up either within a year or over the span of the business's regular operational cycle, depending on which is more extended.

Current Liabilities

Short-term financial obligations that a company is expected to pay within one year.