Which of the Following Is Consistent with the American View

question 97

Multiple Choice

Which of the following is consistent with the American view of the independent enterprise?

• A) A corporation should fall under the control of the state government.
• B) A corporation is an entity that has rules and continuity of existence.
• C) The largest proportion of a corporation's profits must go to social causes.
• D) A company should be equally owned by all employees and stakeholders.
• E) Corporations do not take precedence over family and social relationships.

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Definitions:

Exculpatory Clause

A contractual provision that relieves one party from liability for harm caused during the execution of the contract, within the limits of the law.

Strict Liability Clause

A legal principle that holds an individual or entity responsible for their actions or products, regardless of negligence or intent.

Limited Liability Clause

A provision in a contract that limits the amount of money one party can be responsible for in case of breach of the contract.

Res Ipsa Loquitur

A legal doctrine stating that the occurrence of an accident implies negligence, as the event would not normally happen without it.