Which of the Following Will Satisfy the Definition of a 'Constructive

question 1

Multiple Choice

Which of the following will satisfy the definition of a 'constructive liability',as outlined in the IASB Conceptual Framework?

• A) A decision by management to carry out maintenance over the next two years
• B) A public offer to repair a defective good, even if it is out of warranty
• C) A parent company's guarantee to meet the debts of a subsidiary entity if the subsidiary itself cannot pay them
• D) All of the given options are correct.

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Definitions:

Wealthy Planters

Individuals or families who own large agricultural estates, often worked by slaves or laborers, and hold significant social, economic, and political power.

Backcountry Farmers

Farmers in the 18th and 19th centuries located in remote rural areas of the American colonies and the United States, often living on the frontier and practicing subsistence farming.

Benedict Arnold

An American military officer who served during the Revolutionary War before defecting to the British side, becoming synonymous with the term traitor.

War for Independence

The conflict between the Thirteen American Colonies and Great Britain from 1775 to 1783, resulting in the establishment of the United States of America.