A commitment is best described as
◦ an agreement to commit the firm to a set of fixed conditions in the future.
◦ an agreement to commit the firm to a set of fixed conditions in the future that depends on company profitability.
◦ an agreement to commit the firm to a set of fixed conditions in the future that depends on current market conditions.
◦ a potential future obligation to an outside party for an as yet to be determined amount.