Timmy Calls Tommy a Liar

question 22

Multiple Choice

Timmy calls Tommy a liar. Tommy responds, "It takes one to know one." Tommy is guilty of which fallacy?

• A) Sweeping generalization
• B) Ad hominem
• C) Appeal to authority
• D) Tu quoque
• E) Appeal to ignorance

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Definitions:

Retained Earnings

The portion of a business's profits not distributed to shareholders but instead reinvested in the business or kept as reserve.

Paid-in Capital

The amount of capital "paid in" by investors during common or preferred stock issuances, including the par value of the shares and amounts over par value.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, often with dividends that are paid out before common stock dividends.

Common Stock

A type of equity security that represents ownership in a corporation, with holders typically having voting rights and receiving dividends.