Harvey Quit His Job at the University of Toronto Where

question 103

Multiple Choice

Harvey quit his job at the University of Toronto where he earned $45,000 a year,the same as other employees of normal ability,the same as other employees of normal ability.But Harvey is unusually talented in another area,and he figures his entrepreneurial talent,or forgone entrepreneurial income,to be $5000 a year.He cashed in $100,000 in bonds that earned 10% interest annually to buy a software company,Extreme Gaming.In the first year,the firm sold 11,000 units of software at $75 per unit.Of the $75 per unit,$55 goes for the costs of production,packaging,marketing,employee wages and benefits,and rent on a building.
-Refer to the above information.The economic profit in the first year was

• A) $50,000.
• B) $70,000.
• C) $160,000.
• D) $220,000.
• E) $250,000.

Comprehend the legal consequences of various torts against property.

Understand the principles of negligence and the defenses against it.

Grasp the concept and legal implications of damages in civil lawsuits.

Familiarize with the duty of care in tort law and the application of negligence theories.

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Definitions:

Dishonored Note

A dishonored note is a promissory note that has not been paid upon its maturity date.

Journal Entries

Records of financial transactions in the chronological order by which they occur, entered in the accounting records.

Accounting Problems

Challenges or difficulties encountered in the process of recording, classifying, summarizing, and interpreting financial transactions and events.

Promissory Note

A monetary instrument featuring a formal pledge from one entity to another to pay a specified amount of money, which can be either upon request or on a predetermined future date.