Which of the Following Must a Person Prove to Rescind

question 47

Multiple Choice

Which of the following must a person prove to rescind a contract if the misrepresentation was innocent?

• A)That the fact was asserted
• B)That the fact was disclosed
• C)That the fact was material
• D)That the fact was ratified

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Definitions:

Capital Structure

The mixture of debt and equity financing a firm uses to fund its operations and growth.

Flotation Costs

The costs associated with the process of raising new capital through the sale of stocks or bonds to investors, including advisory, legal, and promotional expenses.

Preferred Stock

Preferred stock is a type of stock that confers certain privileges or priorities to its holders, such as fixed dividends and priority over common stock in asset liquidation.

Par Value

The face value of a bond or stock, as stated by the issuing company; it is often a nominal figure that does not necessarily equate to the market value.