The Legal Responsibility for the Financial Cost of Another Person's

question 123

Multiple Choice

The legal responsibility for the financial cost of another person's losses or injuries is referred to as:

• A)theft.
• B)robbery.
• C)liability.
• D)assigned risk.
• E)collusion.

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Definitions:

Capital Equity

The amount of money that would be returned to shareholders if all of the assets were liquidated and all of the company's debts were paid off.

Partnership Contract

A legal agreement between partners that outlines the terms and conditions of their business relationship.

Profits

The financial gain realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Income Ratio

A financial metric comparing earnings to another element, such as sales or assets, to assess profitability or performance.