Which of the Following Is Not True About Liability Risks

question 54

Multiple Choice

Which of the following is not true about liability risks?

• A) Liability risk is where the firm may be legally responsible for the harm it causes to another person.
• B) Liability risks are sometimes overlooked due to their intangible nature.
• C) Only a breach of contract and criminal acts can lead to liability risk for a firm.
• D) A tort can lead to a liability risk.

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Definitions:

National Income

The total income earned by a nation's people and businesses, including salaries, profits, and investment income, within a specific period.

Net National Product

The total value of all goods and services produced by a country's residents in a year, minus depreciation.

Depreciation

A decrease in the value of a currency as measured by the amount of foreign currency it can buy.

Intermediate Goods

Goods or services used in the production process of final goods and services but are not themselves final products.