Uri and Vida Enter into a Contract in Electronic Form

question 26

Multiple Choice

Uri and Vida enter into a contract in electronic form. Neither party prints out or signs a hard copy. Under Electronic Signatures in Global and National Commerce Act (E-SIGN Act) , this contract can

• A) be denied effect because it is in electronic form.
• B) be denied effect because a hard copy has not been printed.
• C) be denied effect because a hard copy has not been signed.
• D) not be denied effect because it is in electronic form.

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Definitions:

Shareholders' Equity

The leftover value in a company's assets once all debts are subtracted, symbolizing the stake of ownership.

Share Capital

The amount of money raised by a company through the sale of shares, representing the funding provided by shareholders.

Current Liabilities

Financial obligations or debts a company is expected to settle within one fiscal year or its operating cycle, whichever is longer.