Maximization of shareholder wealth A) provides benefits to society as scarce resources are directed to their most productive use. B) is not a practical goal since it cannot be measured effectively. C) is achieved only if cash flows exceed accounting profits. D) represents a zero sum game in which one corporation gains at the expense […]
Which of the following statements about the legal obligations of a property owner is (are) true? I. A property owner must inspect the premises for the benefit of an invitee and correct any unsafe conditions. II. A property owner has the right to set a trap designed to injure a trespasser. A) I only B) […]
All of the following requirements must be met to satisfy the doctrine of res ipsa loquitur EXCEPT A) The injured party has not contributed to the accident in any way. B) The injured party must prove negligence on the part of the defendant. C) The event is one that normally does not occur in the […]
Under certain conditions, the wrongful acts of one person can be attributed to another person. This practice is called A) imputed negligence. B) mediation. C) comparative negligence. D) strict liability. ANSWER Answer: A
Which of the following statements about the immunity of governmental entities is (are) true? I. Governmental entities are more likely to be immune from liability when performing proprietary functions than when performing governmental functions. II. Many courts have eliminated the immunity of government entities. A) I only B) II only C) both I and II […]
The doctrine of respondeat superior applies to a(n) A) parent’s liability for a negligent child. B) pet owner’s liability for the pet. C) employer’s liability for a negligent employee. D) manufacturer’s liability for a faulty product. ANSWER Answer: C
What is the intent of the family purpose doctrine? A) to impose liability on children for the care of elderly parents B) to impose liability on the owner of an automobile for the negligence of immediate family members operating the automobile C) to impose liability on a parent for any negligence caused by a child […]
Under common law, which of the following persons is most likely to be classified as an invitee? A) a mail carrier B) a social guest C) a door-to-door salesperson D) a solicitor for a charitable organization ANSWER Answer: A
Which of the following are legal obligations of a property owner with respect to an invitee? I. The property owner must warn an invitee of any unsafe conditions. II. The property owner must inspect the premises and eliminate any dangerous conditions revealed by the inspection. A) I only B) II only C) both I and […]
Individuals, corporations, and governments can be either savings deficit units or savings surplus units. Indicate whether the statement is true or false ANSWER TRUE
