Which of the Following Is True of Necessaries

question 18

Multiple Choice

Which of the following is true of necessaries?

• A)The liability for necessaries is quasi-contractual.
• B)A minor is liable for the necessaries that he/she did not receive.
• C)In case of a disaffirmance,the minor need not pay for any necessary.
• D)An item is considered a necessary even if the minor already possesses it.

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Definitions:

Common Stock

A type of security that represents ownership in a corporation, giving holders voting rights and a share in the company’s profits through dividends.

Stockholders' Equity

The residual interest in the assets of a corporation that remains after deducting liabilities, representing ownership interest.

Par Value Common Stock

The nominal or face value assigned to shares of common stock in the corporate charter, which has little relation to the market value of the shares.

Paid-in Capital

Funds received from investors during equity issuances, contributing to a company's equity beyond the initial stock value.