Which of the Following Describes the Relationship Between Equitable and Common

question 7

Multiple Choice

Which of the following describes the relationship between equitable and common law rules?

• A) Common law rules are superior, as equity only acts in personam.
• B) When there is a conflict between common law and equitable principles, common law prevails.
• C) When there is a conflict between common law and equitable principles, equity prevails.
• D) Equity and common law are now both part of the same system, so that no real differences exist.

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Definitions:

Venture Capitalists

Investors who provide capital to startups and small businesses with long-term growth potential.

Equity

Represents fairness or justice in the way people are treated and involves ensuring that everyone has access to equal opportunities.

Stock

A type of security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings.

Post-money Valuation

The estimated value of a company after external financing and investments have been added to its balance sheet.