Condo and co-op boards are subject to the standards of the business judgment rule

Indicate whether the statement is true or false


True

Business

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A company's net sales are $779,290, its costs of goods sold are $436,400, and its net income is $104,735. Its gross margin ratio equals:

A. 13.4%. B. 24.0%. C. 30.6%. D. 44.0%. E. 56.0%.

Business

Two existing businesses are going to form a partnership. Business A's store equipment is valued at $8,000 on its books with accumulated depreciation of $1,500 . The fair market value of the equipment is $6,800 . What value should be entered into the new partnership's books for this equipment?

a. $8,200 b. $8,000 c. $6,500 d. $5,300 e. $6,800

Business

Don was driving his truck when a board fell out of the truck bed and onto the road. Alice, who was driving closely behind Don's truck, tried to avoid the board, swerved and struck a telephone pole, causing her severe injuries. Which of the following is correct?

a. Don is strictly liable to Alice for her injuries. b. In a comparative negligence state, the actions of Don and Alice will be weighed to determine liability. c. Don was not negligent in allowing the board to fall out of his truck. d. Don is engaging in ultrahazardous activity.

Business

Miles worked selling products to industrial users, and spent most of his time working on customers' new buy and modified new buy situations. Miles was primarily a(n)

A. order getter. B. prospector. C. sales support rep. D. new business specialist. E. order taker.

Business