Authorization of Which of the Following Is least likely to Be

question 24

Multiple Choice

Authorization of which of the following is least likely to be found during a review of the minutes of the board of directors?

• A)Dividends.
• B)New debt issuance.
• C)New bank accounts.
• D)Write-off of trade accounts receivable.

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Definitions:

Subjective Standard

A legal standard based on an individual's personal feelings, tastes, or opinions, often used in determining the reasonableness of an action in legal cases.

Objective Impossibility

A situation where the performance of a contractual duty cannot be done by anyone because it is physically or legally impossible.

Subjective Impossibility

A situation in which it is impossible for an individual to perform a contractual duty due to personal inability or circumstances, despite the task being objectively possible.

Frustration Of Purpose

A defense in contract law that may excuse parties from their obligations if an unforeseen event undermines the contract's original purpose.