Which of the Following Would Result If the Owner Withdrew

question 113

Multiple Choice

Which of the following would result if the owner withdrew cash from the business?

• A) Cash would increase and Capital would decrease.
• B) Cash would increase and Withdrawals would increase.
• C) Cash would decrease and Withdrawals would increase.
• D) An investment by the owner is not a business transaction.

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Definitions:

Fitness for a Particular Purpose

A legal warranty implying that a sold good is suitable for the specific use intended by the buyer, as made known to the seller at the time of purchase.

Comparative Fault

A legal doctrine that reduces the amount of damages a plaintiff can recover in a negligence-based lawsuit, based on the degree to which the plaintiff's own negligence contributed to the harm.

Assumption of Risk

A legal defense that claims an individual voluntarily and knowingly assumed the danger inherent to a risky activity they participated in.

Section 402A

A section of the Restatement (Second) of Torts in American law that addresses the liability of the seller for harm caused by a product despite the absence of a contractual relationship.