Ordinary Negligence Is Often Referred to as Constructive Fraud

question 46

True/False

Ordinary negligence is often referred to as constructive fraud.

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Definitions:

Required Rate

The minimum return that investors expect to receive for investing in a particular asset, taking into account its risk.

Expected Growth Rate

The anticipated rate at which a company, asset, or investment is expected to grow over a certain period.

Residual Claims

Claims holding a lower priority than other debt obligations, which are entitled to the income or assets of a corporation after all other obligations have been met.

Common Shares

Equity ownership units in a corporation, entitling holders to dividends and voting rights.