One Result of the Application of Absolute Liability in Some

question 50

Multiple Choice

One result of the application of absolute liability in some product-liability cases is that

• A) there is no incentive to start pharmaceutical businesses in places that apply this concept.
• B) consumer groups have extended the application of this concept to nearly every aspect of consumerism.
• C) some firms need to deal with major uncertainties in their production processes.
• D) business associations that span several jurisdictions have taken up the major burden of litigating most product-liability lawsuits.

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Definitions:

Convertible Bond

A category of bond which allows conversion into a specific quantity of the issuer's equity at designated times throughout its lifespan, often at the choice of the person holding the bond.

Conversion Price

The predetermined price at which a convertible security, like a convertible bond or preferred share, can be converted into common shares of the issuing company.

Market Yield

The annual income return on an investment, expressed as a percentage of the market price.

Stock Price

The cost of purchasing a share of a company's stock on the open market.