In the Pacific Custom Pools, Inc

question 22

Multiple Choice

In the Pacific Custom Pools, Inc.v.Turner Construction Company case, the court found that:

• A)the trial court erred in granting a motion for summary judgment on the basis that PCP had not been licensed in California and thus could not bring suit.
• B)the purpose of the relevant licensing law was to protect the public from incompetence and dishonesty in those who provide building and construction services.
• C)under the facts, PCP acted reasonably and in good faith to maintain its license.
• D)PCP met an exception to the California statute providing that a contractor may not maintain an action for the recovery of compensation for work requiring a license unless it had a license at all times during performance of the work.

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Definitions:

Stockholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, representing the owners' equity.

Par Value

The nominal or face value of a bond, share of stock, or other financial instrument, as stated by the issuing company.

Net Income

The amount of profit left after all operating expenses, interest, taxes, and dividends have been deducted from total revenue.

Dividend Payout Ratio

The dividend payout ratio is the fraction of net income a firm pays to its stockholders in dividends, expressed as a percentage, showing the percentage of earnings distributed as dividends.