'Exemplary Damages' Are

question 27

Multiple Choice

'Exemplary damages' are:

• A)Damages awarded to a plaintiff who has not suffered any actual loss as a result of a breach of conduct.
• B)An award of damages to the plaintiff in an amount above and beyond mere compensation, intended by the court to penalise or punish the defendant.
• C)A pre-estimate of the quantity of damages one party will be entitled to in the event of breach by the other party.
• D)Damages payable to the plaintiff that cannot be easily calculated in advance.

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Definitions:

Incremental Cash Flow

The additional cash flow generated by a company from undertaking a new project or making a business decision, used to analyze the profitability of that decision.

Taxes

Taxes are compulsory financial charges or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Dividends

Payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders.

Opportunity Costs

The cost of forgoing the next best alternative when making a decision, representing the benefits one misses out on.