Consider the Following Two Statements

question 1

Multiple Choice

Consider the following two statements.
I.A contract concluded with a minor can only be tainted by incapacity if the adult had knowledge of the minority.
II.A contract may only be avoided for mental incapacity by someone (who is not regarded as incapacitated under the Mental Capacity Act 2005) if the other party knows of his incapacity.
Which of these statements is true?

• A) Both I and II.
• B) Only I.
• C) Only II.
• D) Neither I nor II.

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Definitions:

Synergy

The concept that the combined value and performance of two companies will be greater than the sum of the separate individual parts.

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period of time, used in capital budgeting to assess the profitability of an investment.

Firm Value

The total market value of a company's equity plus its debt, reflecting the overall worth of the company.

Earnings per Share Growth

An increase in the amount of net income earned per share of stock over a specified period, indicating a company's profitability.