Ben Is Concerned That If He Injures Someone or Damages

question 17

Multiple Choice

Ben is concerned that if he injures someone or damages someone's property he could be held legally responsible and required to pay damages.This type of risk is called a

• A)speculative risk.
• B)liability risk.
• C)nondiversifiable risk.
• D)property risk.

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Definitions:

Financial Difficulties

refer to situations where an individual or entity struggles to meet financial obligations due to insufficient funds.

Quantum Meruit

A legal principle that allows a party to receive a reasonable payment for services provided when no specified compensation is involved.

Past Consideration

Something completed before an agreement is made; it is not valid consideration.

Early Repayment

The act of paying off a loan or mortgage before the agreed-upon due date, often resulting in financial penalties.