Which of the Following Is a Correct Statement Regarding Minors

question 42

Multiple Choice

Which of the following is a correct statement regarding minors and necessaries?

• A) Whether a given item is considered a necessary depends on the facts of the particular case.
• B) Items sold to a minor are considered necessaries of life even if the minor's parent or guardian has supplied or is willing to supply similar items.
• C) Minors are generally held liable on a quasi contract basis for the contract price of necessaries furnished to them.
• D) As a general rule, the definition of necessary is narrowing to exclude things commonly considered important by today's standards.

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Definitions:

Treasury Stock

Shares that were once part of the outstanding stock but were bought back by the company and are held in the company's treasury.

Owners' Equity

Represents the residual interest in the assets of a company after deducting its liabilities.

Earnings Per Share

A financial metric that measures the amount of net income earned for each share of a company's common stock.

Net Income

The amount of earnings left over for a company after all expenses and taxes have been subtracted from revenues.