What Do Primary Liability and Vicarious Liability Have in Common

question 43

Multiple Choice

What do primary liability and vicarious liability have in common?

• A) A corporation is subject to accountability for both.
• B) A corporation cannot be assessed for either using the identification theory.
• C) Both require the directing mind to share liability from the corporation.
• D) Both are irrelevant to actual or apparent authority.

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Definitions:

Share Repurchase Program

A plan initiated by a company to buy back its own shares from the marketplace, which can signal confidence in the business and often leads to an increase in the share price.

Seasoned Equity Offering (SEO)

The process by which a publicly-traded company issues additional shares of stock to investors after its initial public offering (IPO) to raise more capital.

Oversubscribed

Oversubscribed refers to a situation where the demand for a new issue of securities exceeds the available supply, often leading to allocation adjustments or a rise in the issue price.

Underpriced Issues

Securities that are sold at a price below their market value, often leading to immediate profits for investors who purchase them during the issuance.