Minors Will Be Liable for Contracts

question 2

Multiple Choice

Minors will be liable for contracts

• A)if the contracts concern necessaries.
• B)if the minor completes a declaration stating that he or she has read and understood the terms of the contract.
• C)if they signed the contract.
• D)if the parent of the minor was present at the time the minor was signing the contract.
• E)if the minor is deemed to be of well-above-average intelligence.

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Definitions:

Common Stock

A type of equity security that represents ownership in a corporation, with rights to dividends and voting in corporate matters.

Treasury Stock

Shares of a company's own stock that it has reacquired but not yet retired or resold.

Paid-in Capital

The amount of money that a company has received from shareholders in exchange for shares of stock, reflecting the investment in the business.

Dividends Payable

A liability account that represents the amount of dividends that a company has declared but not yet paid out to its shareholders.