All of the Following Are Characteristics of the Liability Risk

question 61

Multiple Choice

All of the following are characteristics of the liability risk that most people face EXCEPT

• A)a lien may be placed on your income and assets to satisfy a legal judgment.
• B)substantial legal expenses may be incurred defending the claim.
• C)there is no upper limit on the amount of the loss.
• D)owning liability insurance eliminates the possibility of being held legally liable.

---

Definitions:

Monopolistically Competitive

A market structure characterized by many firms selling products that are similar but not identical, leading to competition based on factors other than price.

Revenue

The total amount of money received by a company or organization from its business activities, such as sales of goods or services, before any expenses are subtracted.

Double Scoop

Typically refers to two servings of ice cream, often served in a cone or cup.

Profit

The financial benefit realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.