What Is the Possible Consequence If One Chooses a Business

question 39

Multiple Choice

What is the possible consequence if one chooses a business name that is too similar to that of an existing business?

• A) being sued for abuse of process
• B) being sued for the tort of injurious falsehood
• C) having the corporation struck from the register
• D) being sued for the tort of passing off

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Definitions:

Perfect Competitor

A hypothetical firm in a perfectly competitive market that cannot influence the market price of its product and takes the market price as given.

Marginal Cost

A concept in economics that refers to the change in the total cost when an additional unit of a product is produced.

Average Total Cost

The total cost of production (fixed and variable costs) divided by the quantity produced, indicating the cost per unit of output.

Marginal Revenue

The additional income generated from the sale of one more unit of a good or service.