When a Minor Avoids Contracts, the Minor Always Must Return

question 12

True/False

When a minor avoids contracts, the minor always must return the other contracting parties to their original financial positions.

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Definitions:

Unit Variable Cost

The cost that varies with each unit produced, including direct materials and labor, but does not include fixed costs.

Property Tax Rates

The percentage of a property's assessed value that is charged as tax by local governments to fund public expenses.

Break-even Point

The sales level at which total revenues equate to total costs, resulting in no profit or loss, indicating the minimum sales necessary to cover all expenses.

Fixed Costs

Expenses that do not change with the level of production or sales activity, such as rent, salaries, and insurance premiums.