A Release Does Not Require Consideration to Be Legally Binding

question 55

True/False

A release does not require consideration to be legally binding.​

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Definitions:

Market Price

The current price at which an asset or service can be bought or sold on the open market.

Retained Earnings

The part of net profits not distributed as dividends, instead kept by the company for reinvesting in its main business operations or for debt repayment.

Large Stock Dividend

A large stock dividend is a distribution of shares to existing shareholders at no additional cost, usually in proportion to their current holdings, often used to conserve cash while still rewarding shareholders.

Capitalization

The process of recording expenditure as an asset on the balance sheet rather than an expense, which is then amortized or depreciated over time.