Which of the Following Is True Regarding When an Offer

question 103

Multiple Choice

Which of the following is true regarding when an offer may be rejected by an offeree?

• A) Regardless of how long an offeror states that an offer will be held open, once the offeree rejects it, the offer is terminated.
• B) If the offeror states that an offer will be held open for a certain amount of time, then it is open for that length of time even if a rejection is received prior to the expiration of that time.
• C) An offer must remain open for at least two days before an offeree may reject it.
• D) An offer must remain open for at least three days before an offeree may reject it.
• E) An offer must remain open for at least four days before an offeree may reject it.

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Definitions:

Market Price

The current price at which an asset or service can be bought or sold in the open market.

Retained Earnings

The portion of net income that is retained by a corporation rather than distributed to its shareholders as dividends, often used for reinvestment.

Other Comprehensive Income

A component of shareholders' equity that reflects the changes in net assets of a company not recognized in the profit or loss for a period.