Which Statement Is True from an Ethical Perspective

question 8

Multiple Choice

Which statement is true from an ethical perspective?

• A) The argument for strict liability is basically utilitarian.
• B) Strict liability is identical with absolute liability.
• C) The concept of due care is identical with that of caveat emptor.
• D) The argument for due care is basically Kantian.

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Definitions:

Stated Interest Rate

This refers to the nominal or advertised interest rate on a loan or financial product, not accounting for compounding or fees.

Trade Credit

A type of commercial financing where a buyer is allowed to purchase goods or services and pay the supplier at a later scheduled date.

Accounts Payable Balance

Accounts payable balance represents the total amount a company owes to its suppliers or creditors for purchases made on credit.

Costly Trade Credit

Refers to the higher cost associated with buying goods or services on credit, when compared to paying cash upfront, due to interest or fees imposed by the seller.