Legal Cause Is Established

question 29

Multiple Choice

Legal cause is established

• A)if the intervening cause is a superseding cause
• B)if the injury was not the foreseeable consequence of the original risk
• C)if the injury was the foreseeable consequence of the original risk
• D)if actual cause exists by the but-for or substantial-factor tests

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Definitions:

Cash Basis

An accounting method where revenues and expenses are recorded when cash is received or paid, rather than when they are incurred.

Statement of Cash Flows

A financial statement that summarizes the amount of cash and cash equivalents entering and leaving a company.

Operating Activities

Business activities related directly to the production, sale, and delivery of a company's products or services, which are reflected in the cash flows from operating activities in the statement of cash flows.

Net Cash

The amount of cash remaining after all operating expenses, investments, and financial activities have been accounted for.