A Durable Power of Attorney Remains Effective Even If the Principal

question 19

True/False

A durable power of attorney remains effective even if the principal is incapacitated.

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Definitions:

Liquidation

The process of converting assets into cash, often during the winding down of a business or the selling off of stock.

Preferred Stock

Preferred stock is a class of ownership in a corporation that has a higher claim on its assets and earnings than common stock. Preferred shareholders typically receive dividends before common shareholders.

Cumulative Dividends

Dividends that are owed and accumulate if not paid in a given period, typically associated with preferred shares.

Common Stock

A type of security that represents ownership in a corporation, with holders having a claim on the company's assets and earnings.