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:

Owner's Drawings

Withdrawals made by the owner of a business from the company's funds for personal use.

Owner's Equity Accounts

Accounts reflecting the owner's investment in the business plus any profits retained in the business, minus any withdrawals made.

Investment in Stock

The purchase of shares in a company to gain partial ownership and potentially earn dividends or capital gains.

Capital Stock

The amount of money or assets that owners have contributed to a corporation in exchange for shares of ownership.