Decision Trees Are Commonly Used to Illustrate How Firms Make

question 146

Multiple Choice

Decision trees are commonly used to illustrate how firms make business decisions that depend on the actions of rival firms.A decision tree has boxes that contain points that represent when firms must make the decisions contained in the boxes.What are these points called?

• A)option points
• B)decision nodes
• C)either-or terminals
• D)decision options

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Definitions:

Duress

Compulsion, force, or pressure applied to someone to coerce them into taking an action against their will or better judgement.

Unilateral Mistake

A situation in contract law where only one party holds an incorrect belief about a basic assumption on which a contract is based, potentially affecting the enforceability of the contract.

Mutual Mistake

A situation in a contract where all parties involved have a common but erroneous belief regarding a vital fact about the contract terms.

Valid Contract

An agreement that meets all legal requirements, including offer, acceptance, consideration, and the intention to create a legal relationship, thereby enforceable by law.