Which of the Following Statements Is TRUE with Respect to the Concept

question 9

Multiple Choice

Which of the following statements is TRUE with respect to the concept of remoteness?

• A) The concept of remoteness has been rejected as a test in thin skull cases.
• B) The concept of remoteness is based mostly on statutes.
• C) The concept of remoteness is part of the test for a duty of care.
• D) The concept of remoteness is connected with the element of causation.
• E) The concept of remoteness has been rejected as a test in cases of intervening acts.

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Definitions:

Cumulative Preferred Stock

A type of preferred stock where missed dividend payments accumulate and must be paid out before any dividends can be issued to common stockholders.

Dividend

A portion of a company's earnings that is distributed to shareholders as a reward for their investment.

Par Value

Par Value is the face value of a bond or share of stock as stated by the issuing company, and it's often a nominal amount used for accounting purposes.

Dividends Payable

This is a liability on the balance sheet representing the amount of dividends that a corporation has declared but not yet paid to its shareholders.