3. James borrowed Zae's truck to drive up to Two Sustah's for a fish plate. When he pulled up in front of the place, the brakes gave out and James crashed into the storefront. James is suing Zae for not keeping his brakes maintained, and the Sustah's are suing both of the boys for the damage to their restaurant. This case illustrates and example of which kind of risk? (Circle all that apply.) a. Property risk b. Diversifiable risk c. Financial risk d. Liability risk

Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter9: The Basic Tools Of Finance
Section: Chapter Questions
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3. James borrowed Zae's truck to drive up to Two Sustah's for a fish plate. When he
pulled up in front of the place, the brakes gave out and James crashed into the
storefront. James is suing Zae for not keeping his brakes maintained, and the Sustah's
are suing both of the boys for the damage to their restaurant. This case illustrates and
example of which kind of risk? (Circle all that apply.)
a. Property risk
b. Diversifiable risk
c. Financial risk
d. Liability risk
Transcribed Image Text:3. James borrowed Zae's truck to drive up to Two Sustah's for a fish plate. When he pulled up in front of the place, the brakes gave out and James crashed into the storefront. James is suing Zae for not keeping his brakes maintained, and the Sustah's are suing both of the boys for the damage to their restaurant. This case illustrates and example of which kind of risk? (Circle all that apply.) a. Property risk b. Diversifiable risk c. Financial risk d. Liability risk
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