The Fact That a Company Is Responsible for the Harm

question 45

Multiple Choice

The fact that a company is responsible for the harm done to customers by its product even if it can show that it did its best according to the state of the art in the industry at that time is called

• A) strict liability.
• B) absolute liability.
• C) historical liability.
• D) market share liability.

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Definitions:

Accounts Receivable Period

The average number of days that a company takes to collect payment after a sale has been made, indicative of the business's efficiency in collecting its receivables.

COGS

Cost of Goods Sold; the direct costs attributable to the production of the goods sold in a company, including material and labor costs.

Cash Cycle

The cash cycle is the period between the purchase of inventory and the collection of receivables from the sale of that inventory.