Which of the Following Statements Concerning Business Risk from Customers

question 78

Multiple Choice

Which of the following statements concerning business risk from customers and others is true?

• A) Customer injuries suffered while upon business property may or may not be the owners fault.
• B) Trespassers are not a risk as they are not legally on the business property.
• C) Class action product liability suits are the most common lawsuits filed against small businesses.
• D) People who file individual lawsuits against a company do not get as much money as those that join a class action suit.

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Definitions:

Investment Income

Income earned from investments, including dividends, interest, or capital gains from securities, real estate, or other holdings.

Acquisition

The process of obtaining control of another corporation, purchasing all or a substantial portion of its assets, or buying its stock.

Common Stock

Shares representing ownership in a corporation, giving holders the right to vote at shareholder meetings and to receive dividends, typically with no predetermined dividend amount.

Accrual Accounting

An accounting method that records revenues and expenses when they are earned or incurred, regardless of when the cash transactions happen.