A Condition Subsequent Can Alter but Not Terminate a Contract

question 49

True/False

A condition subsequent can alter but not terminate a contract.

---

Definitions:

Inventory

Inventory consists of goods and materials a business holds for the ultimate purpose of sale, production, or utilization.

Payout Ratio

Measures the percentage of earnings distributed in the form of cash dividends; computed by dividing cash dividends declared on common stock by net income.

Net Income

The amount of money remaining from revenues after subtracting all costs, expenses, and taxes, indicating the profit earned.

Dividends

Payments made by a corporation to its shareholder members, distributed from the company's profits.