Which of the Following Is Not a Condition Necessary for Ratification

question 29

Multiple Choice

Which of the following is not a condition necessary for ratification?

• A) The agent must have purported to act on behalf of or as an agent for the identified principal.
• B) The third party benefiting from the ratification must give consideration for the ratification.
• C) The principal must have been capable of authorizing the act both at the time of the act and at the time it was ratified.
• D) The principal must have full knowledge of all material facts.

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Definitions:

Common Shares Outstanding

The total number of shares of a corporation's stock that are currently owned by investors, including those held by institutional investors and company officers.

Net Income

The total earnings of a company after deducting all expenses, including taxes and operating costs, from its total revenue.

Weighted-Average

A calculation that takes into consideration the varying degrees of importance of the numbers in a data set.

Cash Dividends

Cash Dividends are payments made by a corporation to its shareholder members. It is a share of profits and retained earnings that the company pays out to its shareholders.