Which of the Following Best Describes a Liability

question 80

Multiple Choice

Which of the following best describes a liability?

• A) Liabilities are a form of share capital.
• B) Liabilities are future economic benefits to which a company is entitled.
• C) Liabilities are accounts receivable of the company.
• D) Liabilities are economic obligations to creditors to be paid at some future date by the company.

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Definitions:

Major Airlines

Refers to the largest and most significant airlines operating in the aviation industry, often recognized by their extensive international and domestic flight operations and substantial fleet size.

Systematic Risk

The risk inherent to the entire market or market segment that cannot be eliminated through diversification.

General Health

A broad term referring to the overall physical and mental condition and well-being of an individual or population.

Unsystematic Risk

The risk of price change due to the unique circumstances of a specific security, as opposed to the overall market.