If a Bailee Misdelivers the Bailed Property at the Termination

question 1

Multiple Choice

If a bailee misdelivers the bailed property at the termination of the bailment,_____.

• A) the bailee is liable to the bailor
• B) the bailor assumed the risk and is liable
• C) the property should not be returned to the bailor
• D) the bailee does not have the burden of showing that the accident occurred despite exercising due care

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Definitions:

Purchase Discounts

Reductions in the purchase price of goods, often granted by suppliers for early payment.

Profit Margin

The percentage difference between a product's selling price and the cost to produce it, indicating the financial health and profitability of a business.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenues, indicating financial performance over a period.

Operating Income

The profit realized from a business's normal operational activities, calculated before tax by subtracting operating expenses from gross profit.