Caveat Emptor Is a Worthwhile Argument for the Seller When

question 46

Multiple Choice

Caveat emptor is a worthwhile argument for the seller when

• A) the goods are not in existence.
• B) the seller does not have title.
• C) the goods are not specific.
• D) the seller has made some misrepresentation.
• E) it is under the scope of Sales of Goods Act.

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Definitions:

Company's Profits

The financial gain realized when the revenues generated from business activities exceed the expenses, costs, and taxes needed to sustain the activities.

Interest

The cost of borrowing money or the return earned on an investment, typically expressed as a percentage.

Accounting Period

A specific time period at the end of which an organization prepares financial statements.

Income Statement

A financial statement that shows a company’s revenues and expenses over a specific period, illustrating how the revenues are transformed into net income or loss.