Kathy and John Decide to Form a Partnership to Sell

question 21

Multiple Choice

Kathy and John decide to form a partnership to sell fish food to local fish farms for the next five years. To be enforceable under the Statute of Frauds, the partnership agreement

• A) must be signed by a notary public.
• B) must be in writing.
• C) must be oral.
• D) cannot involve a third party.

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Definitions:

Annual Dividend

The total dividend payment a company makes to its shareholders in a year.

Dividend Growth Model

A valuation method used to estimate the value of a stock based on its expected future dividend payments and growth rate.

Dividends

Payments made by a corporation to its shareholders, typically from profits, as a distribution of earnings.

Required Return

The minimum expected return an investor demands for holding a particularly risky investment.