A Tort Is

question 50

Multiple Choice

A tort is

• A) a wrongful act done to the person or property of another.
• B) a criminal act.
• C) the punishment imposed on a person for a wrongful act done to the person or property of another.
• D) a breach of contract.
• E) a misrepresentation.

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Definitions:

Cost of Retained Earnings

The opportunity cost to shareholders for having a company retain earnings instead of paying them out as dividends.

Flotation Costs

Expenses incurred by a company in issuing new securities, including legal, administrative, and underwriting fees.

Constant Rate

A fixed percentage or value that does not change over a specified period of time, often used in financial formulas to calculate growth or decay.

Retained Earnings

The portion of net income not distributed to shareholders but instead reinvested in the business or used to pay off debt.