Which of the Following Is Not True in Regards to Strict

question 44

Multiple Choice

Which of the following is not true in regards to strict liability?

• A) It is liability without fault.
• B) It involves a risk of serious harm to people or property.
• C) It is so inherently dangerous that it cannot be safely undertaken.
• D) Plaintiffs always receive punitive damages.
• E) It is not usually performed in the immediate community.

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Definitions:

Working Capital

The difference between a company's current assets and current liabilities, indicating short-term financial health and operational efficiency.

Current Ratio

A liquidity ratio that measures a company's ability to cover its short-term obligations with its current assets.

Times Interest Earned

A ratio that assesses the risk that bondholders will not receive their interest payments or that interest payments will not be made if earnings decrease. The ratio is computed as income before income tax expense plus interest expense divided by interest expense.

Interest Expense

The cost incurred by an entity for borrowed funds, often reflected as a line item on the income statement.