A Principal Who Ratifies a Contract May Begin Accepting Benefits

question 43

True/False

A principal who ratifies a contract may begin accepting benefits under the contract before it has been ratified in writing.

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Definitions:

Callable

a feature of a financial security that allows the issuer to repurchase or redeem the security before its maturity date.

Stock Dividend

A dividend payment made to shareholders in the form of additional shares, rather than cash.

Contributed Capital

Funds that shareholders provide to a company in exchange for shares of stock, representing the equity investment in the company.

Equity

The amount of money that would be returned to shareholders if all of the assets were liquidated and all the company's debts were paid off.