Which of the Following Is Most Likely an Improvident Bargain

question 59

Multiple Choice

Which of the following is most likely an improvident bargain?

• A) when granny assigns all of her assets to a powerful business in exchange for the promise to take care of her grandson in the future
• B) when granny trades her farm for a condo in Florida
• C) when granny assigns all of her assets to a powerful business in exchange for the promise to take care of her in the future
• D) when granny trades her farm for blue chip stocks
• E) none of the above

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Definitions:

Gross Revenues

The total amount of money earned by a business before any deductions or expenses are subtracted.

Indirectly Own Stock

Holding shares in a company through indirect means, such as owning a mutual fund or an exchange-traded fund that in turn owns the stock.

Ultra Vires Doctrine

A legal principle that acts of a corporation must fall within the limits of the powers granted by law and the corporation's own constitution.

Criminally Liable

The legal responsibility or accountability of a person or entity for violations of criminal law, subject to penalties such as fines or imprisonment.