Some Common Liability Risks Include

question 133

Multiple Choice

Some common liability risks include:

• A) driving a car.
• B) entertaining guests at home.
• C) being careless in performing professional duties.
• D) all of the above
• E) none of the above

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Definitions:

Cash Flows

The total amount of money being transferred into and out of a business, especially as affecting liquidity.

Derivative Security

A financial instrument whose value is based on the performance of an underlying asset, such as stocks, bonds, commodities, or currencies.

Financial Asset

Any asset that is cash, the right to receive cash or another financial asset, or an equity instrument of another entity, such as stocks, bonds, or derivatives.

Underlying Asset

An asset upon which a derivative’s price is based, such as stocks, bonds, commodities, or currencies.