Which of the Following Statements Regarding Leases Is CORRECT

question 112

Multiple Choice

Which of the following statements regarding leases is CORRECT?

• A)Finance leases lower the debt ratio.
• B)A debit balance in the Leased Asset account on the balance sheet indicates an operating lease that is less than one year.
• C)Title is transferred to the lessee at the end of an operating lease term.
• D)If a lease does not meet one of the five criteria provided by U.S.GAAP guidelines,it is classified as an operating lease by default.

Understand the principles of negligence and product liability.

Identify the factors courts consider in determining manufacturer negligence.

Explain the concept of strict product liability and the parties that can be held liable.

Recognize the role of federal preemption in state tort law concerning product safety.

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Definitions:

Parasitic

Describes organisms that live on or in a host organism and cause harm to the host.

Scavenging

The act of consuming dead or decaying organic material, a behavior observed in some animals, bacteria, and fungi.

Ectotherm

Animal in which internal temperature is regulated by changes in behavior; for example, a fish or a lizard.