Which of the Following Is True for an Auction Without

question 72

Multiple Choice

Which of the following is true for an auction without reserve?

• A) The bidder is considered the offeror.
• B) The seller need not accept the highest bid.
• C) The goods on sale cannot be withdrawn.
• D) The auctioneer is not allowed to set a minimum bid.

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Definitions:

Marketability

The ease with which an asset can be bought or sold in the market without affecting its price.

Shareholders

Individuals or entities that own one or more shares of stock in a corporation, thereby having an ownership interest in the company.

Board of Directors

A group of individuals elected by shareholders to oversee the management and make major decisions for a corporation.

Accumulated Other Comprehensive Income

A component of shareholders' equity that includes income not recognized in the profit and loss account, such as unrealized gains on securities and foreign exchange differences.