A common situation involving strict liability includes which of the following? A) operating a motor vehicle B) blasting operations C) manufacturing a product D) mining operations ANSWER Answer: B
Date: September 19th, 2020
A corporation needing cash sells securities to investors in the secondary market. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
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 […]
Date: September 19th, 2020
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) […]
Date: September 19th, 2020
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 […]
Date: September 19th, 2020
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
Date: September 19th, 2020
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 […]
Date: September 19th, 2020
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
Date: September 19th, 2020
The primary goal of a publicly owned corporation is to ________. A) minimize shareholder risk B) maximize dividends per share C) maximize shareholder wealth D) maximize earnings per share after taxes ANSWER C
Date: September 19th, 2020
Saving surplus units include individuals and governments, but not corporations. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
