The Fact That a Consumer Is Not Required to Buy

question 23

Multiple Choice

The fact that a consumer is not required to buy the goods that a given firm produces, as well as the fact that the consumer might want the goods a firm produces, but may choose to buy from other firms instead

• A) will reduce the revenue a firm receives and it should shut down.
• B) means the firm has reached it shutdown point and should exit.
• C) is part of the process to a sustained pattern of profits.
• D) are two stark realities any business firm must recognize.

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Definitions:

Due Diligence

The investigation or exercise of care that a reasonable business or person is expected to take before entering into an agreement or contract with another party or an act with a certain standard of care.

Scienter

A legal term referring to the knowledge of the wrongdoing or fraudulent intent in committing an act.

Liability Defense

Liability Defense refers to legal strategies and arguments used to reduce or negate a party's responsibility for a claim or lawsuit.

Insider

An individual with access to confidential or non-public information about a company, often used in the context of insider trading.