A Minor May Disaffirm a Contract

question 36

Multiple Choice

A minor may disaffirm a contract

• A) at any time up until a reasonable time after reaching majority.
• B) only after reaching majority.
• C) but must do so before reaching majority.
• D) if it is for necessaries.

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Definitions:

Capacity Level

The maximum output a company can produce and sell with its current resources.

Maximum Growth Rate

The highest possible rate at which a company can expand its operations using only internal financing sources, without resorting to borrowing or issuing new equity.

Debt-equity Ratio

A metric that measures a company's financial leverage, calculated by dividing a company’s total liabilities by its shareholder equity.

Retention Ratio

The proportion of net income that is retained by a company rather than distributed to shareholders as dividends.