Which of the Following Is an Example of a Formal

question 27

Multiple Choice

Which of the following is an example of a formal contract?

• A) Contracts under seal.
• B) Executed contracts.
• C) Letters of credit.
• D) Contracts under seal and letters of credit, but not executed contracts.
• E) Contracts under seal, letters of credit, and also executed contracts.

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Definitions:

Capital Goods

Long-term assets purchased by businesses to produce goods and services.

Production Possibility Frontier

A curve depicting all maximum output possibilities for two or more goods given a set of inputs (resources), assuming all resources are fully utilized.

Opportunity Costs

The penalty of overlooking the next most advantageous option when a choice is made.

Efficient

Achieving maximum productivity with minimum wasted effort or expense.