Risk-Utility Balancing Refers to the Fact That

question 67

Multiple Choice

Risk-utility balancing refers to the fact that:

• A) manufacturers must disclose all risks to using their product before putting it on the market
• B) all products can be made completely 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) none of the other choices are correct

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Definitions:

Minority Shareholder

An owner of a minority interest in a corporation, typically holding less than 50% of the company's shares.

Unanimous Shareholders' Agreement

A contract among all shareholders of a company that may alter or remove the powers of the directors.

Fiduciary Duty

An obligation to act in the best interest of another party, such as a trustee's duty towards beneficiaries.

Closely Held

A description for a corporation or company that has a small number of shareholders, often characterized by its shares not being widely available to the public.