An Equitable or Constructive Obligation Arises When

question 50

Multiple Choice

An equitable or constructive obligation arises when:

• A) Social or moral sanctions or custom leaves the entity no realistic alternative other than to make a sacrifice of future benefits.
• B) Management makes a discretionary decision to make a future sacrifice of economic benefits.
• C) Management communicates its decision to commit to the future sacrifice of economic benefits to the parties concerned.
• D) Social or moral sanctions or custom leaves the entity no realistic alternative other than to make a sacrifice of future benefits and management communicates its decision to commit to the future sacrifice of economic benefits to the parties concerned.
• E) All of the given answers.

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Definitions:

Milk Secretion

The biological process by which mammary glands produce and release milk to feed offspring.

Endocrine Tissue

Specialized tissues in the body that release hormones directly into the bloodstream, functioning in the regulation of physiological activities.

Adrenal

Pertaining to the adrenal glands, which are small glands located above each kidney that produce a variety of hormones including adrenaline and cortisol.

Anterior Pituitary

The front part of the pituitary gland, producing and releasing hormones that control growth, reproduction, and other functions.