Which of the Following Is True If It Is Determined

question 64

Multiple Choice

Which of the following is true if it is determined that harm befell bailed property due to an "act of God"?

• A) The bailee is liable for harm to the bailed property arising out of the bailee's ordinary or gross negligence.
• B) The bailee is liable for harm to the bailed property arising only out of the bailee's gross negligence.
• C) The bailee is liable for harm to the bailed property caused by even the slightest lack of due care on the part of the bailee.
• D) The bailee is strictly liable for harm to the bailed property.
• E) The bailee is not liable for harm to the bailed property.

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Definitions:

Present Value

The value today of a sum of money or cash flows expected in the future, calculated with a certain rate of return.

Compound Interest

Interest calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan.

Earnings Rate

The rate at which an individual or corporation is taxed or the speed at which an investment grows.

Present Value Index

A ratio used in capital budgeting to evaluate the profitability of investments by comparing the present value of future cash flows to the initial investment cost.