Generally,which of the Following Is FALSE Regarding an Option Contract

question 33

Multiple Choice

Generally,which of the following is FALSE regarding an option contract?

• A)An option contract allows the developer to perform a preliminary market study and feasibility analysis
• B)If the developer decides to purchase a property,the price of an option is applied towards the price of the property
• C)If the developer decides not to purchase the property,the landowner will refund any money paid for the option
• D)An option contract provides the developer with the assurance that a property will not be sold over the course of the option period

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Definitions:

MRP

Marginal Resource Product, which measures the additional revenue generated by employing one more unit of a resource.

MRC

Marginal Revenue Cost, often used interchangeably with Marginal Cost, refers to the increase in cost associated with producing one additional unit of output.

Profitable

The condition of earning more revenue than the costs incurred, leading to a financial gain or profit for the individual or organization.

Innovation

The first commercially successful introduction of a new product, use of a new method of production, or creation of a new form of business organization.