Answer:
D) a penalty clause
Explanation:
Penalty clauses are usually not enforced by the courts since they generate an excessive charge against the other party for defaulting or breaching a contract. Generally penalty clauses are considered excessive since they aren't proportional to the damages incurred.
I think you will get better coverage from Having a FDIC. <span />
Answer:
A. loss of current sales due to a new project being implemented.
Explanation:
In business, erosion takes place when a new product or project competes with another product or project from the came company. This "internal" competition reduces the revenues and benefits from existing products or projects. It is basically a form of business cannibalization, where the left arm takes away from the right arm. E.g. newer smartphone models decrease the sales revenue from existing (older) models.
Answer:
d. Product financing arrangement.
Explanation:
A business transaction in which an organization sells and agrees to repurchase inventory with the repurchase price equal to the initial or original sales price plus the carrying and financing costs is known as the Product financing arrangement.
A product financing arrangement is more likely to exist when the seller commits to having a third party client purchase the item and then agrees to repurchase the item from the third party client.
It's noteworthy to know, that the seller controls how the item sold under either of the above mentioned situations is analysed and disposed of.
