The Due Care Theory Involves at Least the Elements Set

question 20

Multiple Choice

The due care theory involves at least the elements set out below.

• A) products and services meet all government regulations and specifications
• B) ability to return the product if dissatisfied for any reason
• C) products should be inspected regularly for quality
• D) manufacturers should institute a system to recall products that prove dangerous after distribution
• E) a & b
• F) a, c, & d

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Definitions:

Shares

Ownership units in a company that represent a portion of the corporation's capital, giving the shareholder a right to a part of the profits and assets.

Foreign Exchange Risk

The risk that an entity’s financial position, financial performance, or cash flows will be affected by fluctuations in exchange rates.

Recognised Assets

Assets that have been formally acknowledged and recorded on the balance sheet due to their probable future economic benefits.

Unrecognised Firm Commitments

Obligations or agreements that a company has committed to, but are not yet recorded on the balance sheet because they do not meet the recognition criteria.