Which of the Following Types of Damages Are Designed to Punish

question 30

Multiple Choice

Which of the following types of damages are designed to punish the defendant and deter him and others from engaging in similar behavior in the future?

• A) Consequential
• B) Punitive
• C) Liquidated
• D) Nominal
• E) Repugnant

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Definitions:

Common Stock

Represents ownership shares issued by a corporation, giving holders voting rights and a share in the company's profits via dividends.

Retained Earnings

Profits that a company has earned to date, less any dividends or other distributions to shareholders, reinvested in the business.

Measure Of Liquidity

Indicators that demonstrate a company's ability to cover its short-term obligations with its liquid assets.

Debt-Equity Ratio

A gauge of how much a corporation leans on debt, by dividing all owed sums by the total equity of its stockholders.