Diversity of Citizenship Exists When

question 51

Multiple Choice

Diversity of citizenship exists when:

• A) the plaintiffs are all citizens of a state or states different from the state or states of which the defendants are citizens.
• B) a foreign country brings an action against citizens of the United States.
• C) the controversy is between citizens of the United States and citizens of a foreign country.
• D) All of these.

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Definitions:

Capital Accounts

Accounts on a company's balance sheet that represent the cumulative amount of money or other resources contributed by owners plus retained earnings.

Ownership Equity

The portion of a company's assets that belongs to shareholders after liabilities have been subtracted.

Market Value

The immediate cost for transactions involving assets or services within a marketplace.

Book Value

The value of an asset according to its balance sheet account balance, calculated by subtracting any related depreciation or amortization from its original cost.