If a Person Wishes to Ensure That an Offer Will

question 13

Multiple Choice

If a person wishes to ensure that an offer will in fact be held open for a set period of time, the person may do so by entering into a[n] ______________ contract with the offeror.

• A) Clear.
• B) Explicit.
• C) Unrevokable.
• D) Option.
• E) None of these because legally an offeree cannot guarantee that an offer will be held open for a specific time.

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Definitions:

Net Operating Income

The total profit of a business after operating expenses are subtracted from gross profit but before deducting interest and taxes.

Contribution Margin

The amount of revenue remaining after deducting variable costs, which can be used to cover fixed costs and contribute to profit.

Fixed Costs

Costs that do not change with the level of production output, such as rent, salaries, and insurance.

Variable Selling

Costs that change in proportion to the volume of goods or services sold.