When a contract becomes unprofitable to an entity, this is called a(n)
A) uncompleted contract.
B) zero-profit contract.
C) onerous contract.
D) unenforceable contract.

Question

Quizplus · Accepted Answer

An onerous contract is one where the costs to fulfill the contract exceed the expected revenue, making it unprofitable for the entity. Uncompleted contracts refer to contracts that have not yet been fulfilled, zero-profit contracts refer to contracts where the entity does not make a profit but also does not take a loss, and unenforceable contracts are contracts that are not binding or cannot be enforced by law.

When a Contract Becomes Unprofitable to an Entity, This Is