Discuss the concepts of contributory negligence and comparative negligence.
What will be an ideal response?
Contributory negligence is a defense that can be used by a defendant to avoid liability. Most states have discarded this concept; however, if allowed, even if the plaintiff were 1 percent responsible for an accident, she cannot recover from the defendant. Comparative negligence is used to pro rate each party's fault in a negligence case. So, if the plaintiff is 50 percent or less responsible, she is allowed to collect relative to her degree of fault. Thus, if the plaintiff were 30 percent responsible for her accident and sustained $100,000 worth of injuries, she could recover $70,000 (70 percent) from the defendant.
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MECCAS stands for Means-End Conceptualization of Components of Advertising Strategy
Indicate whether the statement is true or false
Which of the following is true?
a. The sale of stock to stockholders is an investing activity. b. The repurchase of stock from stockholders is an investing activity. c. The declaration of stock dividends is a financing activity. d. The payment of cash dividends is a financing activity.
Insurance cannot be sold directly to the insured by the insurer
Indicate whether the statement is true or false
Spice Company issued $200,000 of 10 percent first mortgage bonds on January 1, 20X4, at 105. The bonds mature in 10 years and pay interest semiannually on January 1 and July 1. Pumpkin Corporation purchased $140,000 of Spice's bonds from the original purchaser on December 31, 20X8, for $125,000. Pumpkin owns 75 percent of Spice's voting common stock.Based on the information given above, what amount of premium on bonds payable will be eliminated in the preparation of the 20X8 consolidated financial statements?
A. $2,500 B. $5,000 C. $2,800 D. $3,500