Entering into a Contract with Persons of Legal Age and Normal

question 21

Multiple Choice

Entering into a contract with persons of legal age and normal mentality are considered within the element of:

• A) legality of purpose.
• B) competency of parties.
• C) mutual agreement.
• D) proper form.

---

Definitions:

Intra-entity Gains

Profits realized from transactions within the same entity, often eliminated in preparation of the consolidated financial statements.

Separate Tax Returns

Tax filings made by individuals or married couples separately, rather than a joint tax return, often to optimize tax liability.

Intra-entity Dividends

Dividends that are paid by one part of a company to another part of the same company.