A Work Associate Leaves His Bike Each Day in Your

question 55

Multiple Choice

A work associate leaves his bike each day in your garage while both of you commute to work in your car. (This associate pays $5 per day for riding in your car.) One day the bike is stolen out of your locked garage. Are you responsible for the loss of this bike?

• A) No, since it was gratuitous bailment with a low standard of care.
• B) Yes, since it was stolen from your property.
• C) No, because you met the standard of care required.
• D) Yes, because your home owner's insurance will pay for it.
• E) No, because your work associate automatically assumed this risk.

Understand the effects of different financial policies on a firm's liquidity and cash management.

Identify the appropriate financing options for specific business scenarios.

Differentiate between operating cycle, cash cycle, and their components.

Understand the concept of intelligence and its ability to adapt to the environment.

---

Definitions:

Risk Level

A measure of the potential for loss in an investment or business decision.

Business Units

Distinct segments within a larger corporation, focused on specific product lines or market areas.

Weighted Average

An average in which each quantity to be averaged is assigned a weight, reflecting its importance or frequency relative to other quantities.

Market Value

The transaction value at which a service or asset is currently listed in the market.