A customer was injured when a furnace exploded following its faulty installation by a heating and cooling business. For the heating and cooling business, this is an example of
A) contingent liability.
B) completed operations liability.
C) products liability.
D) contractual liability.
Answer: B
You might also like to view...
Which of the following is in accordance with generally accepted accounting principles?
A. Accrual basis accounting B. Cash basis accounting C. Both accrual basis and cash basis accounting D. Neither accrual basis nor cash basis
What is involved in an Environmental Management System?
What will be an ideal response?
A firm is looking to replace its existing manufacturing machine (Machine 1) with a new, more efficient model (Machine 2). Machine 1 can be sold for $1.25 million and has a book value of $975,000. Machine 2 costs $2.5 million delivered, has initial setup cost of $350,000, and would require $200,000 testing expenses. The firm’s tax rate is 32%. Calculate the initial investment needed to replace Machine 1.
What will be an ideal response?
A major retailer wants to sell items as cheaply as possible while maintaining an attractive and enjoyable shopping atmosphere
Spending too much on ambience will raise prices and drive away shoppers but spending too little will drive shoppers away also. Clearly, the retailer is faced with a(n) ________. Fill in the blank with the appropriate word.