A Strict Liability Standard Is Applied When There Is a ________

question 68

Multiple Choice

A strict liability standard is applied when there is a ________.

• A)design defect
• B)defective warning
• C)manufacturing defect
• D)defect in marketing

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Definitions:

Conversion Value

The value of a convertible security if it were converted into a different security, typically shares of the issuing company's stock.

Convertible Bond

A bond that allows the holder to exchange it for a specific number of the issuer's stock shares at chosen times throughout its duration, typically at the holder's option.

Common Stock

A type of equity security that represents ownership in a corporation, granting holders voting rights and a share in the company’s profits.

Warrant

A financial instrument that gives the holder the right, but not the obligation, to purchase a company's stock at a specified price before a certain date.