If a Principal Does Not Ratify an Unauthorized Contract,the Principal

question 10

True/False

If a principal does not ratify an unauthorized contract,the principal is not bound.

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Definitions:

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year, by comparing current assets to current liabilities.

Current Liabilities

Short-term financial obligations that are due within one year or within a normal operating cycle.

Accounts Receivable Turnover

A financial ratio indicating how efficiently a company collects its receivables or the credit it extends to customers.

Inventory Turnover

A measure of how quickly inventory is sold, calculated by dividing the cost of goods sold by the average inventory.