When Someone Has Some Sort of Mental or Physical Defect

question 83

Multiple Choice

When someone has some sort of mental or physical defect that prevents him or her from being able to enter into a legally binding contract,what term is used?

• A)Capacity
• B)Immajority
• C)Chronic illness
• D)Terminal illness
• E)Incapacity

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Definitions:

Diluted Earnings Per Share

A metric that calculates the quality of earnings per share (EPS) if all convertible securities were converted into common stock, indicating the potential dilution that could occur.

Diluted EPS

Earnings per share calculated under the assumption that all convertible securities and options have been converted into additional shares, potentially lowering the EPS.

Stock Options

Contracts that give the holder the right, but not the obligation, to buy or sell a stock at a specific price before a certain date.

High-Growth Companies

Entities that experience significantly higher rates of growth compared to the average growth rate of their industry.