Caveat Emptor Only Applies to the

question 29

Multiple Choice

Caveat emptor only applies to the

• A) allocation of risks of the goods.
• B) ownership of the goods.
• C) warranty of the goods.
• D) implied performance of the goods.
• E) condition or quality of the goods.

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Definitions:

Limited Liability Company

A corporate framework that merges the tax benefits of a sole proprietorship or partnership with the protective limited liability found in a corporation.

Sole Proprietor

The single person at the head of a sole proprietorship.

Cooperatives

A business organization owned and operated by a group of individuals for their mutual benefit.

S Corporation

A special designation for a corporation that elects to be taxed as a pass-through entity, avoiding double taxation on the corporate income.