When a Contingent Liability Exists the Likelihood for Loss Can

question 78

Multiple Choice

When a contingent liability exists the likelihood for loss can be evaluated as probable,reasonably possible,or remote.A probable loss is

• A)a loss where the chance of occurrence is slight
• B)a loss that is likely to occur
• C)a loss where the chance of occurrence is moderate
• D)falls between the chance of occurrence is slight and a loss is likely to occur

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Definitions:

Majority

More than half of a particular group or amount, often used to describe the age at which a person gains full legal rights and responsibilities.

Exchange Offer

A proposal by a company to trade securities, such as bonds or stocks, for other securities or assets with different terms or values.

Stock Tender Offer

A public offer by a company or individual to purchase a certain amount of shareholders' stock at a specified price for a limited time.

Shares

Units of ownership interest in a corporation or financial asset, representing a portion of the corporation's capital.