When a Judge Wants to Acknowledge That a Legal Wrong

question 16

Multiple Choice

When a judge wants to acknowledge that a legal wrong has occurred, even when there was no actual harm, she would award

• A) compensatory damages.
• B) liquidated damages.
• C) nominal damages.
• D) both compensatory and liquidated damages.

---

Definitions:

Cash Increase

A rise in the amount of cash and cash equivalents held by a business.

Accounts Payable

Liabilities of a business representing money owed to creditors for goods and services purchased on credit.

Source of Cash

Any activity or operation that brings money into a business, contributing to its cash flow.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year, calculated by dividing current assets by current liabilities.