Which of the following is not true about liability risks?
A) Liability risk is where the firm may be legally responsible for the harm it causes to another person.
B) Liability risks are sometimes overlooked due to their intangible nature.
C) Only a breach of contract and criminal acts can lead to liability risk for a firm.
D) A tort can lead to a liability risk.

Question

Quizplus · Accepted Answer

This statement is not true as a tort (civil wrong) can also lead to liability risk for a firm, not just a breach of contract or criminal acts.

Which of the Following Is Not True About Liability Risks