Risk-Utility Balancing Refers to the Fact That

question 285

Multiple Choice

Risk-utility balancing refers to the fact that:

• A) some products cannot be made completely safe
• B) all products can be made safe if manufacturers are willing to spend enough money
• C) some products are inherently dangerous and should be banned from the market
• D) consumers will always manage to hurt themselves by improperly using products
• E) manufacturers must disclose all risks to using their product before putting it on the market

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Definitions:

Working Capital

Current assets minus current liabilities, representing the short-term liquidity and operational efficiency of a business.

Raw Materials

Any materials that go into the final product.

Book Value per Share

The equity available to common shareholders divided by the number of outstanding shares, indicating the value of a company’s equity on a per-share basis.

Market Price

The current price at which an asset or service can be bought or sold in the marketplace.