Which of the Following Statements About Liability Losses Is True

Multiple Choice

Which of the following statements about liability losses is true?

A) They arise from two sources: the obligation to pay legal damages, and the resulting bad publicity.
B) The obligation to pay legal damages is always more expensive than the cost of defense.
C) Defense costs can be expensive, unless the court finds that the plaintiff's claims are groundless.
D) None of the above is true.