Chapter 6 Lesson 3: Contractual Agreements

What is a contract in business?

List the purposes of a contract as mentioned in the text.

• To outline the terms of an agreement

• To provide legal protection

• To establish responsibilities

• All of the above

What are the elements included in a true legally binding contract?

• Offer, Acceptance, Consideration, and Legal Capacity

• Offer, Acceptance, and Mutual Consent

• Consideration, Legal Capacity, and Written Agreement

• Mutual Consent, Written Agreement, and Legal Purpose

What is required for someone to be a competent party in a contract?

• Legal age and sound mind

• Financial stability

• Employment status

• Educational qualification

A contract should include certain elements to address legal consequences. Which of the following is essential?

• Parties' obligations and rights

• The color of the paper

• The font style used

• The number of pages

Which of the following is a type of contract used in business operations?

• Sales Contracts

• Employment Contracts

• Lease Contracts

• All of the above

True or False: A lease contract equates to ownership of a property.

• True

• False

Employment contracts are:

• Legal agreements between employers and employees

• Informal understandings between colleagues

• Government-issued work permits

• Verbal promises of employment

Which of the following is NOT a type of general business contract?

• Partnership Agreements

• Stock Purchase Agreements

• Franchise Agreements

• Employment Agreements

Moral responsibility in the context of business ethics refers to:

• The obligation to follow legal regulations.

• The duty to act in accordance with ethical principles.

• The responsibility to maximize profits.

• The requirement to maintain a competitive edge.