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Contracts Between Adults and Minors Are Always Unenforceable Against the Minor

question 48

True/False

Contracts between adults and minors are always unenforceable against the minor.


Definitions:

Special Dividend Payments

One-time payments made by a company to shareholders, often signaling strong financial health or the distribution of extraordinary profits.

Target Debt/Equity Ratio

A firm's optimal mix of debt and equity financing aimed at minimizing its cost of capital and maximizing valuation.

High Flotation Costs

The expenses incurred by a company in issuing new securities, typically including underwriting, legal, and registration fees, which can be higher for smaller issues.

Positive NPV Projects

Investment opportunities where the net present value (NPV) is greater than zero, indicating that they are expected to generate a profit.

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