Rich Is a Doctor

question 13

Multiple Choice

Rich is a doctor.One day while strolling in the park he sees Adam, a stranger, choking on an apple.Rich does nothing to help Adam.Adam sues Rich for negligently failing to help him.

• A)Rich had a duty to help Adam, because as a doctor it would have been easy for Rich to do so.
• B)Rich did not have a duty to help Adam, because of the emergency that Adam faced.
• C)Rich had a duty to help Adam because of the Tarasoff decision on doctors.
• D)Rich did not have a duty to help Adam because there was no special relationship between Rich and Adam.

Identify the methods of depreciation and their impact on capital budgeting.

Evaluate the advantages and limitations of various capital investment decision methods.

Understand the concept and calculation of the profitability index for investment decisions.

Calculate and interpret the after-tax accounting rate of return on investments.

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Definitions:

Accounting Cycle

The process of recording, classifying, summarizing, and interpreting financial transactions over a fiscal period, culminating in the preparation of financial statements.

Purchasing Cycle

A series of steps that a company goes through to acquire goods or services, from the identification of a need to the approval of the invoice for payment.

Operating Cycle

The period of time it takes for a business to acquire inventory, sell it, and convert the sale into cash.