Which of the Following Statements Is TRUE

question 10

Multiple Choice

Which of the following statements is TRUE?

• A) Punitive damages serve the same basic purpose as nominal damages.
• B) Punitive damages are only available for unintentional torts.
• C) Punitive damages may be awarded even if the defendant is not guilty of a crime.
• D) Punitive damages cannot be awarded in addition to compensatory damages.
• E) Punitive damages are only available for intentional torts.

---

Definitions:

Long-Term Assets

Assets that are expected to provide economic benefits to a firm for more than one fiscal year, such as land, buildings, and machinery.

Current Liabilities

A firm’s financial obligations to short-term creditors, which must be repaid within one year.

Financing Activities

Transactions and events that affect the long-term liabilities and equity of a company, including issuing debt, securing loans, or selling company shares.