What Is the Focus of the Standard of Care Required

question 60

Multiple Choice

What is the focus of the standard of care required of a gratuitous bailor?

• A) A bailor must take utmost care to protect the bailed goods.
• B) Proof of ownership must be provided.
• C) It must be determined whether the bailor or bailee is receiving the benefit of the bailment.
• D) It will depend on the common law strict liability rules.

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Definitions:

Du Pont Identity

A financial analysis formula that breaks down return on equity into three components: profit margin, asset turnover, and financial leverage.

Operating Efficiency

A measure of the effectiveness and productivity with which a business or organization operates, often relating to how well it utilizes its resources.

Asset Use Efficiency

How effectively a company utilizes its assets to generate revenue.

Times Interest Earned Ratio

A financial metric that measures a company’s ability to meet its debt obligations by comparing its income before interest and taxes to its interest expenses.