The US Courts Throughout the Nineteenth Century Upheld the Principle of of Caveat

question 39

True/False

The U.S. courts throughout the nineteenth century upheld the principle of caveat emptor.

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Definitions:

Residual Income

The net operating income that an investment center earns above the minimum required return on its operating assets.

Investment Center

A business segment whose manager has control over cost, revenue, and investments in operating assets.

Cost Center

A business segment whose manager has control over cost but has no control over revenue or investments in operating assets.

Profit Center

A business segment whose manager has control over cost and revenue but has no control over investments in operating assets.