In Deciding Whether to Drop Its Electronics Product Line,a Company's

question 63

Multiple Choice

In deciding whether to drop its electronics product line,a company's manager should ignore ________.

• A) the variable and fixed costs it could save by dropping the product line
• B) the revenues it would lose from dropping the product line
• C) the effect of dropping the electronics product line on the sales of its other products
• D) the amount of unavoidable fixed costs

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Definitions:

Intervening Cause

An event or factor occurring after a party's initial act that significantly contributes to an outcome or event, potentially absolving the original actor of liability.

Proximate Causation

A principle in law that establishes the legal cause of an event based on the foreseeability of the harm and a direct relation to the injury.

Actual Causation

The fact-based determination that a defendant's action was the direct cause of the plaintiff's injury.

But-For Causation

A principle in law that determines causality by asking whether the harm would not have occurred but for the defendant's actions.