Suppose That Cheryl's Only Assets Are an Automobile Worth $10,000

question 60

Multiple Choice

Suppose that Cheryl's only assets are an automobile worth $10,000 and a checking account with a $5,000 balance. Her only liabilities are a student loan balance of $2,000 and a balance of $8,000 on her car loan. What is her net worth?

• A) $10,000
• B) $8,000
• C) $5,000
• D) $2,000
• E) none of the above

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Definitions:

Agency Relationship

A legal relationship in which one party, the agent, acts on behalf of another party, the principal, with the principal's consent.

Right

A legal, moral, or social entitlement to have or obtain something or to act in a certain way.

Respondeat Superior

A legal doctrine holding an employer or principal responsible for the actions of their employees or agents performed within the course of their employment or agency.

Multi-national Corporation

A large corporation that operates and provides goods or services in multiple countries beyond its initial country of origin.