Which of the Following Can Be Described as Involving Direct

question 134

Multiple Choice

Which of the following can be described as involving direct finance?

• A)A corporation issues new shares of stock.
• B)People buy shares in a mutual fund.
• C)A pension fund manager buys a short-term corporate security in the secondary market.
• D)An insurance company buys shares of common stock in the over-the-counter markets.

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Definitions:

Contributory Negligence

A legal doctrine that reduces the amount of damages a plaintiff can recover in a negligence-based claim, based upon the degree to which the plaintiff's own negligence contributed to cause the injury.

Assumption of Risk

A legal doctrine where an individual knowingly exposes themselves to danger and is considered to have voluntarily assumed the risk of injury.

Adulterated Food

Food products that have been compromised in quality or safety due to the addition of substances or the removal of vital components.

Consequential Damages

These refer to indirect losses that result from a breach of contract, which were foreseeable and a direct consequence of the breach, such as lost profits or revenue.