Which of the Following Is True When an Offer Authorizes

question 55

Multiple Choice

Which of the following is true when an offer authorizes a certain mode of acceptance but does not require it, and an offeree attempts to accept the offer through a method other than the authorized means?

• A) The acceptance becomes a counteroffer that the original offeror may or may not accept.
• B) There is no contract, and the attempted acceptance is of no effect.
• C) There is a contract only if the acceptance is received by the time that acceptance through the authorized means would have been received.
• D) The contract is not formed until the acceptance is received by the offeror.
• E) Authorizing but not requiring a certain type of acceptance has no effect, and the mailbox rule applies.

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Definitions:

Operating Leverage

A measure of how sensitive a company's operating income is to changes in revenue.

Marginal Tax Rate

The rate of tax applied to the next dollar of taxable income, indicating how much tax will be paid on an additional dollar earned.

Operating Cash Flow

A measure of the cash generated by a company's normal business operations.

DOL

Degree of Operating Leverage, a ratio that measures how a company's operating income changes with a change in sales, indicating the effects of fixed costs on profits.