The Basic Rule of _____ Is That a Person Owes

question 2

Multiple Choice

The basic rule of _____ is that a person owes a duty of care to avoid foreseeable injury to others.

• A) negligence
• B) Magnuson-Moss Act
• C) breach of warranty
• D) strict liability

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Definitions:

Average Total Assets

A measure calculated by taking the sum of total assets at the beginning and end of a period and dividing by two, used to evaluate a company's asset utilization efficiency.

Average Total Liabilities

The average amount of money that a company owes to others over a specific time period, used to assess the company's financial health.

Depreciation Expense

An accounting method that allocates the cost of a tangible or physical asset over its useful life.

Debt-to-Equity

A metric used to evaluate a company's financial leverage, calculated by dividing its total liabilities by its shareholders' equity.