Which of the Following Is Not a Common Negligent Action

question 100

Multiple Choice

Which of the following is not a common negligent action leading to product liability case?

• A) negligent manufacture
• B) negligent testing or failure to test
• C) negligent advertising
• D) negligent infliction of emotional distress

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Definitions:

Fair Value

An estimate of the market value of an asset or liability, based on current prices in active markets.

Noncash Asset

An asset that is not cash or does not directly translate into cash in a short period, such as property, plant, and equipment.

Corporation

A legal entity that is separate and distinct from its owners, who are shareholders, and has its own rights and obligations.

Treasury Stock

Shares that were once part of the outstanding shares but were bought back by the company, reducing the amount of stock on the open market.