Ratification Makes a Contract Void from the Beginning

question 55

True/False

Ratification makes a contract void from the beginning.

---

Definitions:

IFRS

The International Financial Reporting Standards are globally accepted rules intended to bring consistency to accounting language, practices, and statements across all industries.

Preference Shares

Shares that give holders a priority over common stockholders in terms of receiving dividends and assets in the event of a liquidation, often without voting rights.

Interest Expense

The cost incurred by an entity for borrowed funds, reflected on the income statement as a charge against earnings.

Stock Options

Financial instruments that give the holder the right, but not the obligation, to buy or sell a stock at a predetermined price within a specific time frame.