Examlex

Solved

The Profitability Index Measures the Present Value of Benefits Received

question 94

True/False

The profitability index measures the present value of benefits received for each dollar invested.


Definitions:

Illusory Contract

An agreement that lacks a binding obligation from one or more parties, typically because terms are too vague or one party has the option not to perform their promise.

Subjective Standard

A legal standard based on an individual's personal feelings, tastes, or opinions, often used in determining the reasonableness of an action in legal cases.

Objective Impossibility

A situation where the performance of a contractual duty cannot be done by anyone because it is physically or legally impossible.

Subjective Impossibility

A situation in which it is impossible for an individual to perform a contractual duty due to personal inability or circumstances, despite the task being objectively possible.

Related Questions