An Exculpatory Clause Is Generally Unenforceable When

question 36

Multiple Choice

An exculpatory clause is generally unenforceable when

• A)it attempts to release a party from liability for ordinarily negligent behavior.
• B)it involves public transportation.
• C)it is written clearly and in bold,large print.
• D)the affected activity is a recreational activity.

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Definitions:

Shareholders' Equity

The remaining value of a company's assets after liabilities are subtracted, which signifies the ownership stake of the shareholders.

Debits

An accounting entry that increases an asset or expense account, or decreases a liability or equity account.

Credits

Entries in accounting that increase liabilities or equity or decrease an asset or expense.

Transaction Recording Process

The systematic approach of documenting financial transactions in the accounting records of a business, ensuring accuracy and completeness.