The Contractor Might Try to Negotiate Payment Terms That Require

question 72

Multiple Choice

The contractor might try to negotiate payment terms that require the customer to do one or more of the following except

• A) provide frequent payments, such as weekly or monthly payments rather than quarterly payments.
• B) make equal monthly payments based on the expected duration of the project.
• C) make a single payment at the end of the project.
• D) provide a down payment at the start of the project.

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Definitions:

Entity

In accounting and finance, an entity refers to any organization, company, or individual that has a separate legal existence and can engage in economic activities and transactions.

Third Parties

Individuals or entities that are involved in a transaction or agreement but are not one of the principal parties.

Return On Assets

A financial metric used to gauge how efficiently a company uses its assets to generate profit.

Common Equity

The amount of ownership interest in a corporation, represented by common stock, that is available to shareholders after debts and liabilities have been settled.