Which of the following statements is true about a counteroffer?
A. An offeree who makes a counteroffer is still considered the offeree.
B. A counteroffer terminates the existing offer.
C. A counteroffer can only be made by the original offeror.
D. A counteroffer is effective even before it has been received by the original offeror.
Answer: B
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The Contract Clause prevents a state from:
a. changing contracts after they have been made. b. affecting any agreements between two parties. c. contracting with another state. d. making contracts with private individuals.
The Ivory Islands Resort offers a forty percent discount on lodging from September through December every year, due the dramatic drop in the number of visitors during that period-largely because of unfavorable weather conditions. This type of price reduction is called a
A. noncumulative quantity discount. B. functional discount. C. trade discount. D. seasonal discount. E. cumulative quantity discount.
Whether a cost behaves as a fixed cost or as a variable cost depends upon the:
A. significance of the dollar amount of the cost. B. cost structure of the company. C. industry. D. activity based used.
As the assistant to the CFO of Johnstone Inc., you must estimate its cost of common equity. You have been provided with the following data: D0 = $0.80; P0 = $22.50; and gL = 8.00% (constant). Based on the dividend growth model, what is the cost of common from reinvested earnings?
A. 10.69% B. 11.25% C. 11.84% D. 12.43% E. 13.05%