Indicate the Correct Statement About Consideration

question 21

Multiple Choice

Indicate the correct statement about consideration.

• A)Consideration is "the price for which the promise (or the act)of the other is bought."
• B)In a unilateral contract,the performance of the promisee provides no consideration to the promisor.
• C)In a bilateral contract,the exchange of promises does not provide consideration for both parties.
• D)An altered course of action (e.g.,forbearance)is not good consideration.
• E)The common law holds that consideration must be adequate to ensure that contracts are fair bargains.

---

Definitions:

Equity

The value of an owner’s interest in a property or a business, after deducting liabilities and debts.

Dividends

Dividends are a portion of a company's earnings distributed to shareholders, usually in the form of cash payments or additional shares, reflecting the company's profitability and investment return.

Ledger Account

A record that keeps track of all the transactions related to a particular aspect of a business's finances, such as sales or assets.

Land And Buildings

Assets categorization in accounting, where land refers to the cost of land owned by a company and buildings to the cost of structures situated on the land.