The Point at Which Liability for Negligence Stops Is Called

question 25

Multiple Choice

The point at which liability for negligence stops is called

• A) proximate cause.
• B) negligence per se.
• C) res ipsa loquitur.
• D) negligence interruptus.

---

Definitions:

Long-Term Liabilities

Obligations due to be paid or settled beyond one year, including loans, bonds, lease obligations, and pension obligations.

Total Liabilities

The sum of all financial obligations a company owes to outside parties, including debts and other financial commitments.

Shareholders' Equity

The residual interest in the assets of a corporation that remains after deducting its liabilities; also known as stockholders' equity.

Equity Multiplier

A financial leverage ratio that measures the portion of a firm's assets that is financed by stockholder's equity.