Exculpatory Clauses Are Generally Unenforceable If They Seek to Avoid

question 28

Multiple Choice

Exculpatory clauses are generally unenforceable if they seek to avoid liability for:

• A) better monetary benefit for one side.
• B) accidental damages.
• C) fraud or willful misconduct.
• D) negligence.

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Definitions:

Expected Growth Rate

The projected annual rate at which an investment or a company's earnings are expected to grow.

Constant Growth Model

A model used to estimate the value of a stock assuming that dividends grow at a constant rate indefinitely.

Required Return

The basic yearly rate of return essential for inducing companies or individuals to invest money into a specific project or security.

Annual Dividend

The total dividend payment a shareholder will receive from a company in a single year, per share owned.