Paul, Acting Without Authority, Makes a Contract with Ed, Supposedly

question 36

True/False

Paul, acting without authority, makes a contract with Ed, supposedly on behalf of Shawna. Shawna may ratify the contract, even if Ed loses contractual capacity before she ratifies the contract.

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Definitions:

Expected Growth Rate

The anticipated rate at which an investment, economy, or other financial entity will grow over a certain period.

Rate of Return

The outcome in terms of profit or loss on an investment over a designated period, presented as a percentage of the investment’s first cost.

Dividend

A part of a company’s profits given out to its shareholders, usually as cash or more shares.

ROE

Return on Equity; a measure of financial performance calculated by dividing net income by shareholder equity.