Tom Excused His Poor Judgment in Choosing the Wording for the Contract

question 25

True/False

Tom excused his poor judgment in choosing the wording for the contract by saying that he was under medication for an ulcer at the time.This is an example of diffusion of responsibility.

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Definitions:

Capital Intensity Ratio

A financial metric that measures the amount of assets needed per dollar of sales; higher ratios indicate a greater investment in assets to generate sales.

Capital Intensity Ratio

A measure of a company's investment in physical assets relative to its labor force, indicating the extent to which a firm's operations are automated or labor-intensive.

Operating Capacity

The maximum output that a business can produce in a given period under normal conditions, influenced by its resources and operational constraints.

Notes Payable

Short-term or long-term liabilities in the form of written promises to pay a specified amount with interest by a certain date.