Pete and John Had Been Hired by the Same Computer

question 28

Multiple Choice

Pete and John had been hired by the same computer consulting company. They worked a 3-hour shift and walked to a pub, where they had several beers. John said he'd drive Pete home. Pete knew John had been drinking but agreed to go with him anyway. The alcohol affected John's driving. He lost control of the car, which crashed through Mr. Britt's fence and Britt's garage. Pete was injured. John was not injured. Britt's neighbour, Mr. Watson, called the police. John was charged with the offence of driving while impaired and was found guilty in the criminal proceedings. Given these facts, which of the following is true?

• A) Since Mr. Britt was not physically injured, he could not sue.
• B) Mr. Watson, the neighbour, could successfully sue John for negligence.
• C) Pete could sue John for negligence, but if the court held that Pete volunteered to take the physical and legal risk (volenti non fit injuria), Pete would get no award of damages.
• D) The principle of vicarious liability is relevant here because John was an employee at the time of the accident. John was charged with an offence; no one could sue him in a civil action for compensation.
• E) One court action is all that is allowed.

Comprehend the growth management strategies for small businesses, including delegation of authority.

Explain the importance of innovation and customer focus in the success of small businesses.

Realize the potential immediate threats to small and mid-sized businesses and strategies to mitigate them.

Know the role of personal assets and savings as a source of funds for starting a business.

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Definitions:

Time Value

Time value relates to the concept that money available at the present time is worth more than the same amount in the future due to its potential earning capacity.

Voting Stock

Shares that give the shareholder the right to vote on corporate matters, such as electing directors and approving company policies.

Book Value

The value of an asset according to its balance sheet account balance, taking into account the cost of the asset minus depreciation.

Fair Value

The estimated market price of an asset or liability in an orderly transaction between market participants at the measurement date.