Burger Barn has been named as a plaintiff in a $5 million lawsuit filed by a customer over the addictive nature of the company's burgers. Burger Barn's attorneys have advised them that the likelihood of a future obligation from the suit is remote. What should Burger Barn do as a result of the information that is available?
A. Ignore the lawsuit in its financial statements
B. Disclose the lawsuit in the notes to the financial statements
C. Recognize a $5 million liability on its balance sheet for the contingency
D. Settle with the customer immediately for $5 million to avoid harmful publicity
Answer: A
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A) informative advertising B) persuasive advertising C) reminder advertising D) developmental advertising E) comparative advertising
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Indicate whether the statement is true or false
Which of the following is an example of a firm's stakeholder?
A) suppliers B) Federal reserve C) media D) competitors