What Is the Legal Significance in Most States When a Minor

question 71

Multiple Choice

What is the legal significance in most states when a minor misrepresents his or her age?

• A)That if a competent party relies on a misrepresentation in good faith,the minor gives up the right to disaffirm the agreement.
• B)That the minor must restore the competent party to that party's pre-contract position before obtaining the disaffirmance.
• C)That the minor may disaffirm the contract,but the competent party has the right to sue the minor in tort and recover damages for fraud.
• D)That misrepresentation does not affect the minor's right to disaffirm the contract.
• E)That misrepresentation results in the minor receiving a return of only the monetary consideration (if any)he or she paid to the other contracting party.

Recognize the potential dilutive effects of convertible securities and stock options on diluted EPS.

Understand how stock dividends and splits impact retained earnings and total stockholders' equity.

Distinguish the impact on EPS for conveying information on continuing operations, discontinued operations, extraordinary items, and changes in accounting principles.

Understand the conceptual and practical implications of stock and cash dividends on financial statements.

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Definitions:

Variation Terminology

Language and terms used to describe changes or differences in variables or conditions.

Directly

In a straight and unambiguous manner, often indicating a direct relationship between variables in mathematics.

Fourth Root

A number that when raised to the fourth power yields the original number; it is the square root of the square root.

Inversely

Describes a relationship where one quantity increases as another decreases at a consistent rate, often used in proportion and inverse variation contexts.