UCC Section 2-204 Provides Three Important Rules That Enable Parties

question 27

Multiple Choice

UCC Section 2-204 provides three important rules that enable parties to make a contract quickly and informally.Which of the following is NOT one of these rules?

• A)The parties may make a contract in any manner sufficient to show that they reached an agreement.
• B)A writing sufficient under the Statute of Frauds may be a simple memo,a letter,or informal note,but need not itself be a contract.
• C)The UCC will enforce a deal even though it is difficult to say exactly when it was formed.
• D)A court may enforce a bargain even though one or more terms were left open.

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Definitions:

Average Cost

The total cost of goods available for sale divided by the total units available for sale, determining the cost of inventory.

WACC

The Weighted Average Cost of Capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is proportionately weighted. It represents the minimum return that a company must earn on its existing asset base to satisfy its creditors, owners, and other providers of capital.

Component Cost

The cost associated with each separate element (debt, equity, etc.) that comprises the overall cost of capital for a firm.

Noncallable Bond

A type of bond that cannot be redeemed by the issuer before its maturity date, thus offering investors protection against early repayment risks.