A Situation in Which a Person Is Held Legally Liable

question 52

Multiple Choice

A situation in which a person is held legally liable even though fault or negligence cannot be proven is an example of

• A)general damages.
• B)comparative negligence.
• C)an intentional tort.
• D)strict liability.

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Definitions:

Fixed Costs

Costs that do not vary with the level of production or sales over a specified period, such as rent or salaries.

Operating Income

The profit realized from a business's operations after subtracting operating expenses from gross profits.

Contribution Margin

The residual amount from sales income post the subtraction of variable costs, signifying its role in offsetting fixed expenses and creating profit.

Variable Costs

Costs that vary directly with the level of production or sales volume, such as raw materials and direct labor expenses.