Which of the Following Is True Regarding the Duty That

question 56

Multiple Choice

Which of the following is true regarding the duty that a business owes to customers?

• A) A business owes no duty to its customers other than to sell safe products.
• B) A business owes an absolute duty to keep its customers safe and is strictly liable for any harm.
• C) A business only owes a minimal duty toward customers.
• D) A business owes a negligence per se duty toward customers.
• E) A business has a duty of care to protect their customers against foreseeable risks about which the owner knew or reasonably should have known.

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Definitions:

Market Risk Premium

The extra return investors demand for holding a risky market portfolio instead of risk-free assets.

Required Rate Of Return

The minimum return an investor expects to achieve by investing in a particular asset, taking into account the risk associated with it.

Portfolio Beta

A measure of the volatility, or systematic risk, of a portfolio compared to the market as a whole, indicating how sensitive the portfolio is to market movements.

Diversified Portfolio

An investment strategy that spreads investments across various asset classes to reduce risk and potential volatility.