Which of the Following Causes Problems in Determining When Diversity

question 103

Multiple Choice

Which of the following causes problems in determining when diversity of citizenship exists in cases involving business corporations?

• A) The fact that business corporations usually settle their cases with a small-claims court
• B) The fact that business corporations are frequently incorporated in one state and have their principal place of business in another state
• C) The fact that business corporations are allowed to forego their right to be classified as a person
• D) The fact that business corporations only fall under the jurisdiction of a small-claims court that considers businesses as persons
• E) The fact that business corporations always deal with amounts that are higher than the jurisdictional amount

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Definitions:

Salvage Value

The estimated residual value of an asset at the end of its useful life, expected to be recovered upon disposal.

Variable Manufacturing Costs

Costs that vary directly with the level of production, such as raw materials and labor expenses.

Variable Manufacturing Costs

Costs that vary directly with the level of production output, such as raw materials and direct labor.