Which of the Following Statements Is TRUE with Respect to Misrepresentations

question 62

Multiple Choice

Which of the following statements is TRUE with respect to misrepresentations?

• A)An innocent misrepresentation may trigger an award of damages.
• B)A fraudulent misrepresentation may trigger rescission but not damages.
• C)A negligent misrepresentation may trigger damages but not rescission.
• D)An innocent misrepresentation may be rescinded.
• E)A pre-contractual misrepresentation may trigger relief in contract but not relief in tort.

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Definitions:

Earnings Per Share

Earnings per share (EPS) is a financial ratio that indicates the portion of a company's profit allocated to each outstanding share of common stock.

Treasury Shares

Treasury shares are previously issued shares that have been bought back by the issuing company, reducing the amount of outstanding stock on the open market.

Market Price

The current price at which an asset or service can be bought or sold in an open and competitive market.

Gross Profit Percentage

A financial ratio expressing gross profit as a percentage of revenue, indicating the efficiency of production or service delivery.