If We Assume That a Company Will Be in Business

question 2

True/False

If we assume that a company will be in business forever and that it continues to pay dividends during its existence,then we have an annuity dividend stream.

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Definitions:

Implied Agreement

A contract formed by actions of the parties that indicate a mutual intent to agree, rather than through written or spoken words.

Partnership Term

The duration or length of time during which a partnership agreement is effective or operational.

Personal Debts

Financial obligations or amounts owed by individuals as opposed to businesses or governments.

Supposed To Dissolve

Expected or intended to undergo dissolution or termination, often in the context of a legal entity or agreement.