Which of the Following Is True Regarding the Requirements of Ratification

question 6

Multiple Choice

Which of the following is true regarding the requirements of ratification?

• A)An agent's illegal contract cannot be made binding by the principal's subsequent ratification.
• B)An agent should disclose the principal's identity when entering into a contract with a third party.
• C)A principal without legal capacity can ratify the unauthorized acts of the agent.
• D)An agent's beneficial acts can be ratified by the principal while the detrimental ones can be rejected.

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Definitions:

Present Value

The present value of anticipated future cash flows or sums of money, calculated with a given rate of earnings.

Net Cash Flow

The difference between a company's cash inflows and outflows during a specific period, providing insight into its financial health and liquidity.

Internal Rate Of Return

The discount rate at which the net present value of all the cash flows from an investment equal zero.

Present Values

The current worth of a future sum of money or stream of cash flow given a specified rate of return.