Some Termination Clauses State That the Buyer Can Terminate a Contract

question 5

True/False

Some termination clauses state that the buyer can terminate a contract for any reason and give the supplier only 24 hours' notice.

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Definitions:

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, often divided into share capital and retained earnings.

Common Stock

A type of equity security that denotes ownership in a corporation, entitling the holder to a claim on part of the company's profits in the form of dividends and voting rights.

Common Stock Account

An equity account that represents the ownership interests of common shareholders in a company.

Stated Value

A value assigned to a company's no-par value stock by the company’s board of directors.