A Corporation That Is Technically Defective but That Is Formed

question 51

True/False

A corporation that is technically defective but that is formed in good faith and exercises corporate power is known as a de jure corporation.

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Definitions:

Discount Rate

The interest rate used to calculate the present value of future cash flows.

Present Values

The today's worth of a future cash amount or cash flow series, determined by a given rate of return.

Discounting

The process of determining the present value of future cash flows by applying a discount rate, reflecting the time value of money.

Compounding

The process in which the value of an investment increases because the earnings on an investment, both capital gains and interest, earn interest as time passes.