What Is the Intent of the Family Purpose Doctrine

question 45

Multiple Choice

What is the intent of the family purpose doctrine?

• A)to impose liability on children for the care of elderly parents
• B)to impose liability on the owner of an automobile for the negligence of immediate family members operating the automobile
• C)to impose liability on a parent for any negligence caused by a child
• D)to impose strict liability on the owner of a wild animal for any injuries caused by the animal

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Definitions:

Cash Flows

The collective sum of cash flowing in and out of a company, which influences its liquidity.

Investing Sections

Refers to the part of the cash flow statement that shows the flow of cash related to investments in assets, securities, and other non-operational activities.

Financing Sections

Parts of financial statements or reports that detail funding activities like equity, debt issuance, and repayment of debt, providing insights into how a company finances its operations.

Cash Inflows

The total amount of money being transferred into a business, often from operations, investments, and financing activities.