Able,a Resident of New York,has a Dispute with Baker,a Resident

question 40

Multiple Choice

Able,a resident of New York,has a dispute with Baker,a resident of Illinois,involving a contract signed and performed in New York.His damages amount to $75,000,and he wants to sue.The case can be brought:

• A) only in the New York state courts.
• B) only in the New York federal court.
• C) only in the Illinois state courts.
• D) in either the New York state courts or the New York federal court.

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Definitions:

Net Income

The total earnings of a company after all expenses and taxes have been deducted from revenue.

Owner's Equity

The residual interest in the assets of an entity after deducting liabilities, representing the ownership interest in the company.

Owner's Drawings

The funds taken from the business by the owner for personal use, not considered as salary or wages.

Owner Drawings

Refers to the money or assets taken out of a business by the owner(s) for personal use.