Which of the Following, If True, Would Strengthen the Case

question 116

Multiple Choice

Which of the following, if True, would strengthen the case that Streeter & Sons has too much debt?

• A) The company has grown only slowly since its beginning.
• B) The company's customer base has steadily increased in the last few years.
• C) The company is outcompeting other similar companies in the area.
• D) The company's current liabilities are higher than its current and fixed assets.
• E) The company has built up a substantial amount of owners' equity.

---

Definitions:

Innocent Misrepresentation

A false statement made by one party to another without knowledge of its falsity, not intended to deceive, but which leads the other party to enter into a contract or agreement.

Damages

Monetary compensation awarded by a court to a person who has suffered loss or harm due to the unlawful act or negligence of another.

Nondisclosure

An agreement in which parties agree not to reveal information covered by the agreement.

Undue Influence

A legal term referring to a situation where an individual is able to persuade another's decisions due to the relationship between the two parties being such that one is dominant over the other.