Which of the Following Statements Is True of the Legal

question 94

Multiple Choice

Which of the following statements is true of the legal system?

• A) The state enforces legal rules through civil and criminal sanctions.
• B) The motivation to observe moral values in a legal system comes from within an individual.
• C) It sets moral standards but does not legally prosecute in instances of breach.
• D) It involves a broader-based commitment to proper behavior than does the ethical system.
• E) It sets the highest ethical standards acceptable to a society.

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Definitions:

Bond Indenture

A legal contract between a bond issuer and a bondholder that specifies the terms of the bond, such as the interest rate, maturity date, and payment schedule.

Discount Amortization

The process of systematically reducing the discount on bonds payable over the life of the bonds, thereby increasing the carrying amount of the bonds.

Semiannual Interest

Interest that is calculated and paid twice a year, often used in the context of bonds and loans.

Straight-Line Method

A depreciation method that allocates an equal amount of depreciation expense for an asset over its useful life.