A Sole Proprietorship Is a Business That Is Owned, and Usually

question 70

True/False

A sole proprietorship is a business that is owned, and usually managed, by a single individual.

Identify when a contract can be ratified and the effects of ratification or disaffirmance on the legality of contracts entered into by minors.

Understand the conditions under which a person may be considered to have legal incapacity to enter into contracts and the consequences thereof.

Grasp the legal distinctions and consequences of entering into contracts that contain illegal subject matter or perform illegal actions.

Recognize the role of arbitrators and courts in determining the enforceability of contracts challenged on the basis of legality.

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Definitions:

Net Realizable Value

The estimated selling price of goods minus the cost of their sale or disposal, used in valuing inventory to reflect the net amount that can be realized.

Allowance for Doubtful Accounts

An estimation of future uncollectible amounts from customers, reducing the accounts receivable balance to a more realistic figure.

Previously Written Off

This term refers to debts or assets that had been removed from an organization's financial statements as losses but may later be recovered or re-evaluated.

Maturity Value

Maturity Value is the amount payable to an investor at the end of a fixed-term investment, including the principal and any interest earned.