Bob Owns a Business Delivering Coffee and Donuts Within the Downtown

question 40

Multiple Choice

Bob owns a business delivering coffee and donuts within the downtown area of the city. Smith Co. calls him to deliver a large quantity of his products to their local office. While taking a coffee urn through the Smith Co.'s office, Bob drops it on Lester, scalding him. Who is liable?

• A) Smith Co. and Bob are liable.
• B) Bob alone is liable.
• C) Lester has to absorb the cost himself since he assumed the risk by working at Smith Co.
• D) Only Smith Co. is liable.

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Definitions:

Deferred Costs

Expenses or costs that are incurred in one period but deferred to future periods for financial reporting.

Monetary Policy

The process by which a country's central bank controls the money supply, often targeting an inflation rate or interest rate to ensure economic stability and growth.

Rent-seeking Behavior

The practice of seeking to increase one's share of existing wealth without creating new wealth, often through lobbying or exploiting monopolies.

Government Functions

These are activities or operations carried out by a government to maintain order, provide public services, and enforce legal codes.