MrWhite Enters into a Contract to Sell a Car to Joe

question 35

Multiple Choice

Mr.White enters into a contract to sell a car to Joe Jr.who is 15 years old and is considered a minor in the state where he lives.What is the status of the contract that Mr.White and Joe Jr.entered into?

• A) The contract is voidable,and is enforceable till Joe Jr.cancels it.
• B) The contract is void and unenforceable.
• C) The contract is enforceable and valid.
• D) If the contract is registered with the Secretary of State's office it will become enforceable.

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Definitions:

Δ Stockholders' Equity

The change in the total value of a company's equity over a specific period, influenced by earnings, dividends, and stock issues.

Financing Activities

Transactions and events where a company generates or repays capital to finance its operations.

Comparative Balance Sheets

Financial statements that present the assets, liabilities, and equity of an entity at different points in time for comparison.

Cash Flows

Represents the total amount of money being transferred into and out of a business, especially as affecting liquidity.