Matt Was Walking in the Schoolyard of His Son’s Elementary

question 69

Multiple Choice

Matt was walking in the schoolyard of his son’s elementary school when he sold cocaine to a drug user. The police caught him making the sale and arrested him. This is his first offense. According to the Anti Drug Abuse Acts of 1986 and 1988, what punishment should Matt expect to receive?

• A)ten to twenty years in prison
• B)a sentence two times longer than he would have received if he had been caught selling in the parking lot of his oldest son's college
• C)one to five months' probation
• D)His punishment will be determined by the laws governing the state where Matt sold the drugs.

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Definitions:

Common Share

A type of equity ownership in a corporation, representing a fraction of the total ownership, where each share entitles the holder to a vote at company meetings and a share in the company’s profits.

Acid-Test Ratio

A liquidity ratio measuring a company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.

Balance Sheet

A report that encapsulates a business's assets, debts, and owner's equity at a certain date.

Financial Leverage

The use of borrowed funds with a fixed cost in an effort to amplify the potential return to shareholders.