Which of the Following Is Not a Forward Contract

question 44

Multiple Choice

Which of the following is not a forward contract?

• A) a long-term employment contract at a fixed salary
• B) an automobile lease non-cancelable for three years
• C) a rain check
• D) a signed contract to buy a house in six months
• E) none of the above

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Definitions:

Initial Contribution

The initial capital or assets put into a venture, project, or partnership by its founders or partners.

Production Costs

Expenses directly associated with the manufacturing of goods or the provision of services, such as raw materials and labor.

Unrealised Profit

Profit that has been generated on paper due to accounting entries but has not been realized through cash or other assets.

Retained Earnings

The portion of net earnings not paid out as dividends but retained by the company to be reinvested in its core business or to pay debt.