Which of the Following Is Untrue About a Corporation's Ratification

question 45

Multiple Choice

Which of the following is untrue about a corporation's ratification of an act of an officer?

• A) It applies to an authorized act of an officer.
• B) It relates back to the original transaction.
• C) It may be either express or implied from the corporation's acceptance of the contract's benefits.
• D) The corporation must have full knowledge of the facts in order to ratify the act.

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Definitions:

Sales Returns and Allowances

Concessions made by the seller, including refunds and reductions in the original selling price for returned goods or deficiencies.

Operating Expenses

Expenses incurred from a company's primary business activities, excluding cost of goods sold, such as rent, salaries, and utility bills.

Gross Profit

The difference between revenue and the cost of goods sold, before deducting overhead, payroll, taxation, and interest.

Cost of Goods Sold

Cost of goods sold is the direct costs attributable to the production of the goods sold by a company, including material and labor expenses.