A Person Lacks Contractual Capacity If

question 25

Multiple Choice

A person lacks contractual capacity if:

• A) the person is a chronic alcoholic.
• B) the person is a drug addict.
• C) because of mental impairment,the person does not comprehend that a contract is being made or understand its consequences.
• D) all of the above.

Analyze the effect of project-specific risks on the cost of capital and the importance of adjusting the WACC for different risk profiles.

Understand the impact of fiscal policy on aggregate demand and the natural rate of unemployment.

Recognize the time lags associated with the approval and implementation of fiscal policy.

Identify and explain the concepts of stagflation and political business cycles.

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Definitions:

Passive Activities

Economic activities or investments in which the investor does not materially participate, often subject to different tax rules.

Schedule A

A form used in the U.S. tax system for itemizing deductions, including medical expenses, taxes paid, and charitable contributions.

Schedule C

A tax form used by sole proprietors in the United States to report the income and expenses of their business, used to calculate net business profit or loss.

Primarily Rental

Describes a property used mainly for rental purposes, affecting its tax treatment and eligible deductions.