If Only One Party Promises Something, Such as Paying a Certain

question 36

Multiple Choice

If only one party promises something, such as paying a certain amount of money, and the other party promises nothing, then the agreement lacks:

• A) consideration.
• B) competence.
• C) legality of purpose.
• D) offer and acceptance.

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Definitions:

Expense Equation

A financial formula used to calculate the total expenses by summing all costs, both fixed and variable.

Revenue Equation

The revenue equation is a mathematical expression that calculates the total revenue earned by selling goods or services, usually represented as Revenue = Price x Quantity sold.

Breakeven Point

The financial point at which costs or expenses and revenue are equal, resulting in neither profit nor loss.

Expense Functions

Mathematical representations that describe the relationship between expenses incurred and the level of activity or volume of operations.