Defects of Financial Responsibility Laws Include Which of the Following

question 32

Multiple Choice

Defects of financial responsibility laws include which of the following?
I.Accident victims may not be fully compensated for their injuries.
II.They apply only to property damage losses,not to bodily injury claims.

• A)I only
• B)II only
• C)both I and II
• D)neither I nor II

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Definitions:

Variable Cost

Expenses that are directly linked to the scale of production activity.

Fixed Cost

Costs that do not change with the level of output or sales in the short term, such as rent, salaries, and insurance.

Depreciation Expense

The portion of the total cost of a tangible asset that is charged as an expense in a reporting period, due to its reduction in useful life.

Sensitivity Analysis

A technique used to determine how different values of an independent variable impact a particular dependent variable under a given set of assumptions.