To Win an Action in Negligence Against a Professional Person

question 131

Multiple Choice

To win an action in negligence against a professional person, the plaintiff must prove, among other things, that the defendant's conduct was below an acceptable standard of care.Which of the following is the legal standard of care demanded of a professional person?

• A)That he or she act sincerely and as may reasonably be expected of a skilled professional
• B)That he or she act as a reasonably prudent person
• C)That he or she act as may reasonably be expected of the normally skilled professional in that class
• D)That he or she act sincerely and with goodwill
• E)That he or she act to the very best of his or her ability

Understand the principles of financial risk management and the goal it serves in stabilizing a firm’s cash flows and costs.

Grasp the differences between various financial contracts (forwards, futures, options, swaps) and their unique characteristics.

Acknowledge the factors driving the use of derivatives by firms, particularly for managing foreign exchange exposure and the cost of inputs.

Understand the concept of transaction exposure and how corporations manage this risk through derivatives.

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Definitions:

Cash Dividends

Payments made by a company out of its earnings to its shareholders, typically in the form of cash, representing a portion of the company's profits.

Retention Ratio

The percentage of net income that is retained in the business rather than paid out as dividends; synonymous with Plowback Ratio.

Cash Dividends

Cash dividends refer to the distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders in the form of cash.

Selling and Administrative Expenses

Costs associated with the daily operations of a business that are not directly linked to producing the product or service but are necessary for selling and managing the business.