Bobby and Fredrick Specify in Their Contract That for Every

question 72

Multiple Choice

Bobby and Fredrick specify in their contract that for every day Bobby's construction company does not complete Fredrick's new house, Bobby will deduct $1000. This is known as a ________ damages clause.

• A) punitive
• B) compensatory
• C) nominal
• D) consequential
• E) liquidated

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Definitions:

Privileged Subscription

An offer to existing shareholders to purchase additional shares in a company before the new shares are offered to the public.

Holder-Of-Record Date

The specific cutoff date established by a corporation by which one must be on the company's books as a shareholder to receive a dividend or other distribution.

Percentage Ownership

The fraction of a company's shares owned by an individual or entity, expressed as a percentage of the total shares outstanding.

Ex-Rights

A status of a stock that signifies it is being traded without the right to receive the most recent dividend payment or issuance.