Which of the Following Statements Is TRUE

question 69

Multiple Choice

Which of the following statements is TRUE?

• A) An intention to create legal relations never exists in a family context.
• B) The courts use a subjective test when determining whether or not there is an intention to create legal relations.
• C) An intention to create legal relations always exists in a commercial context.
• D) When dealing with the intention to create legal relations, courts apply presumptions that cannot be rebutted.
• E) The existence of an intention to create legal relations is usually obvious.

---

Definitions:

Financial Responsibility

The obligation to manage one's resources prudently and ensure that all financial obligations are met.

Sole Proprietorships

A business structure where a single individual owns, operates, and is responsible for the business.

Corporations

Legal entities recognized by law as separate from their owners, with the ability to own assets, incur liabilities, and engage in contracts or legal actions.

Market System

A market structure where the decisions about production, investment, and distribution are driven by the price signals that emerge from the dynamics of supply and demand.