Once a Contract Made by a Minor Has Been Effectively

question 18

True/False

Once a contract made by a minor has been effectively ratified,it cannot be affirmed.

Identify different types of liabilities and understand their impact on personal finance.

Understand the purpose and components of a cash flow statement.

Learn strategies for managing and reducing fixed expenses.

Identify signs of insolvency and understand its implications.

---

Definitions:

Traceable Fixed Expenses

Fixed costs that can be directly linked to a specific business segment, product, or operation and would disappear if the segment was discontinued.

Common Fixed Expenses

Fixed costs that are not directly attributable to a specific product or service line and must be paid regardless of the level of production or sales.

Contribution Margin

The amount remaining from sales revenue after variable costs have been deducted, indicating how much revenue contributes to covering fixed costs.

Variable Selling Expense

Expenses that fluctuate in direct proportion to sales volume, including commissions and freight fees.