Which of the Following Statements Is True About Caveat Emptor

question 15

Multiple Choice

Which of the following statements is true about caveat emptor?

• A) As a legal principle,the phrase has been routinely approved.
• B) It is often the first line of defense by producers of shoddy merchandise.
• C) Using it as a defense puts the entrepreneur who uses it in a positive light.
• D) A business using it as a principle is considered highly legitimate and accountable.

---

Definitions:

Foreign Exchange Market

A global marketplace for trading national currencies against one another.

Debt Market

A financial market where participants can issue and trade debt securities, often used by corporations and governments to finance their operations.

Derivatives Market

A market where financial instruments such as futures, options, and swaps are traded, whose value is derived from the value of an underlying asset.

Tertiary Market

A smaller and less accessible segment of the financial market where lesser-known securities are traded.