If the Life of an Agreement Is Indefinite and There

question 24

True/False

If the life of an agreement is indefinite and there is a possibility of it being completed within a year, the agreement need not be in writing to be enforceable.

---

Definitions:

Debt/Equity Ratio

Debt/Equity Ratio is a financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets.

Compromise Policy

A strategy or approach that involves making concessions or finding a middle ground between different opinions or objectives in decision-making processes.

Cash Dividend

A distribution of a company's earnings to shareholders in the form of cash, indicating the company's underlying profitability and cash flow health.

Flotation Costs

Costs that a company faces when it issues new securities, consisting of fees for underwriting, legal services, and registration.