Answer the following statement(s) true (T) or false (F)
1. A negligence standard, with the allowance of contributory negligence, always leads to a socially optimal outcome.
2. Strict liability is the liability that exists when it can be proven beyond a reasonable doubt that the defendant was negligent.
3. Negligence is irrelevant when a strict liability standard is applied.
4. The principle of general average gives a ship's captain an incentive to consider the value of cargo when jettisoning it to prevent a disaster.
5. The doctrine of Respondent Superior contends that an employer is sheltered from torts committed against his employees.
1. False
2. False
3. True
4. True
5. False
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Because of their __________ liability, corporate stockholders are more concerned with __________
A) limited; success than failure B) limited; failure than success C) unlimited; success than failure D) unlimited; failure than success
According to the Net Present Value (NPV) rule, managers choose to invest if
a. The NPV of the project is less than zero b. The NPV of the project is greater than zero c. The NPV of the project is equal to zero d. The NPV of the project is equal to the cost of capital