Contracts Made by Minors Are Void

question 11

True/False

Contracts made by minors are void.

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Definitions:

Stock Dividend

A dividend payment made in the form of additional shares rather than a cash payout.

Retained Earnings

Profits that a company has earned to date, less any dividends or other distributions paid to shareholders, often reinvested back into the company.

Share Capital

The funds raised by a company through the issuance of shares, representing the ownership of the company.

Cumulative Preferred Shares

Preferred stock where dividends accumulate if not paid in a given period and must be paid out before any dividends can be paid to common stockholders.