________ Exists When an Offeror Communicates a Valid Offer with Clear

question 51

Multiple Choice

________ exists when an offeror communicates a valid offer with clear and unambiguous terms to the offeree,and the offer has been accepted properly by the offeree.

• A)Legality
• B)Capacity
• C)Consideration
• D)Mutual assent

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Definitions:

Pretax Income

The income earned by a business before any taxes have been deducted.

Target Pretax Income

The income a company aims to achieve before deducting taxes, often set for budgeting or goal-setting purposes.

Budgeted Income Statement

A financial report projecting revenue, expenses, and net income for a future period, based on management's expectations.

Degree of Operating Leverage

A measurement of how a company's operating income responds to a change in sales, indicating the level of fixed versus variable costs.