Consideration Can Have Legal Value If the Promisee

question 37

Multiple Choice

Consideration can have legal value if the promisee:

• A) does not perform an act in the case of unilateral contracts.
• B) does something he or she had no prior legal duty to do in exchange for the promisor's promise.
• C) agrees to do something he or she has a legal right to do in exchange for the promisor's promise.
• D) does not give up something in exchange for the promise made by the promisor.

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Definitions:

Gross Margin

The difference between sales revenue and the cost of goods sold, representing the fundamental profitability of the goods or services sold.

Manufacturing Overhead

All indirect costs associated with the production process, including utilities, maintenance, and salaries of production managers, not directly attributable to a specific product.

Work in Process

Inventory that includes items that are in the process of being manufactured but are not yet completed.

Journal Entries

Records of financial transactions in the accounting system, in chronological order.