Obiter Dicta of a Higher Court Can Become a Binding

question 67

Multiple Choice

Obiter dicta of a higher court can become a binding precedent if:

• A)the decision of the court is published in writing.
• B)another court decides to distinguish it.
• C)another court adopts it as the legal rule or principle upon which its decision is based.
• D)the Governor-General declares it to be binding.

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Definitions:

Interest Expense

The expenses an entity bears over a period for using borrowed capital.

Short-term Creditors

refers to entities or individuals that lend money or extend credit for short periods, typically less than a year, including suppliers and banks.

Liquidity

A measure of how easily assets can be converted into cash without significant loss of value, indicating the ability of an entity to meet its short-term obligations.

Price-Earnings Ratio

A measurement that contrasts a firm's stock price with its earnings per share to determine if its shares are valued appropriately.