Which of the Following Statements Best Describes Common Law

question 1

Multiple Choice

Which of the following statements best describes common law?

• A)Common law is law that is the same or similar in all states.
• B)Common law is derived from statutes and codes made by legislatures.
• C)Common law is based on Justinian and Napoleonic codes.
• D)Common law requires judges to base their decisions on prior cases.

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Definitions:

Discounted Payback Period

The time it takes to recoup an investment considering the time value of money, by discounting future cash flows to present value.

Market Value

The immediate cost at which services or assets are exchangeable in a free trading market.

Net Present Value

A financial metric that discounts all expected future cash flows to their present value to assess the viability or profitability of an investment.

Investment Cost

The total amount of money spent to acquire an investment, including all charges, fees, and acquisition expenses.