Apples & Pears Orchards Contracts to Hire Brigit for One

question 16

Multiple Choice

Apples & Pears Orchards contracts to hire Brigit for one year to tend the fruit in its commercial orchards but reserves the right to cancel the employment on thirty days' notice at any time after Brigit begins work.This promise is

• A)enforceable.
• B)illusory.
• C)unliquidated.
• D)unforeseen.

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Definitions:

Risk-Free Rate

An interest rate that serves as a benchmark for the minimum return investors should expect because it carries no risk of financial loss.

Growth Rate

The rate at which a company's earnings or the economy's output increases over time.

Expected Return

The anticipated amount of profit or loss an investment is likely to generate over a specific period.

Required Return

The minimum expected return an investor demands for the level of risk taken on an investment.