Which of the Following Occurs When a Person Reaches the Age

question 64

Multiple Choice

Which of the following occurs when a person reaches the age of majority and states, either orally or in writing, that he or she intends to be bound by the contract entered into as a minor?

• A) Implied ratification
• B) Express ratification
• C) Express novation
• D) Implied novation
• E) Express ratification if the statement is in writing but nothing if the statement is only oral

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Definitions:

Translation Gains

Financial gains resulting from converting the financial statements of a foreign subsidiary into the parent company's reporting currency.

Realized

Refers to profits or losses that have been made official by a transaction or event, distinguishing them from unrealized or paper profits or losses.

Taxed

The imposition of a financial charge or other levy upon a taxpayer by a governing state or the functional equivalent of a state.

Forward Contracts

Financial derivatives that obligate the buyer to purchase, and the seller to sell, a particular asset at a predetermined future date and price.