The Key Issue in Passing the Business on to an Employee

question 25

Multiple Choice

The key issue in passing the business on to an employee is

• A) long-term debt
• B) ownership
• C) cash flow
• D) experience

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Definitions:

Proximate Cause

A legal concept that refers to the primary cause of an injury or damage, determining liability based on the directness of the relationship between the action and the harm.

Intervening Cause

An event that occurs after a defendant's act, significantly contributing to an outcome or damage, thus potentially relieving the defendant of liability.

Actual Cause

The direct reason or factor that produces an effect, leading to a specific outcome or event.

Reasonableness of Risk

The assessment of whether the risk of harm in a situation is justified under the circumstances.