Written Contracts Are More Common for Transactions That Take Place

question 125

Multiple Choice

Written contracts are more common for transactions that take place over a long period of time than they are for transactions that are instantaneous because as time passes

• A)buyers and sellers tend to forget what they agreed upon.
• B)conditions may change giving one party an incentive to renege.
• C)the object to be bought or sold loses value.
• D)laws involving contract enforcement become more stringent.

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Definitions:

Sarbanes-Oxley Act

This act, enacted in 2002, aims to protect investors from the possibility of fraudulent accounting activities by corporations.

Corporate Fraud

It involves illegal activities undertaken by an individual or company in a deceitful manner, typically to gain a financial advantage.

Sarbanes-Oxley Act

U.S. legislation enacted in 2002 to protect investors from the possibility of fraudulent accounting activities by corporations, increasing transparency and accountability in corporate governance.

Unlawful Conduct

Actions or behaviors that are illegal or prohibited by law.