Jim's Neighbour Barrows a Card Table and Four Chairs for a Party

question 41

Multiple Choice

Jim's neighbour barrows a card table and four chairs for a party that Jim and his wife will be attending. Regarding the table and chairs, the neighbour

• A) has a high standard of care since he is getting the benefit.
• B) has a low standard of care since Jim and his wife are getting benefits.
• C) is a bailee with a medium standard of care.
• D) has a low standard of care since they are friends.
• E) Is a bailor with a high standard of care.

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Definitions:

Ordinary Annuity

An annuity in which the payments are made at the end of each payment interval.

Monthly Payments

Regular payments made every month, often in the context of loans or leases, to repay borrowed money plus interest.

Compounded Annually

The process of calculating interest on both the initial principal and the accumulated interest from previous periods on an annual basis.

Yearly Contributions

These are amounts of money contributed to any type of savings or investment plan on an annual basis.