Beacon Incorporated Owns a Chain of Retail Stores

question 90

Essay

Beacon Incorporated owns a chain of retail stores. During December of 2009, a customer slipped in a doorway of its Virginia store and broke his ribs. He is suing Beacon for $200,000 for negligence. Beacon's legal counsel believes that it is remote that Beacon will lose its defense of the lawsuit because the doorway recently was rebuilt with all-weather traction stripping and a sign on the door warned customers that the doorway was slippery when icy. On December 30, 2009, before considering the effects of this lawsuit, Beacon's current assets, total assets, current liabilities, and total liabilities were $420,000, $840,000, $100,000, and $300,000, respectively. After this event is properly accounted for, calculate Beacon's debt/asset ratio on December 31, 2009.

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Definitions:

Cognitive Load

The cumulative mental energy expended in working memory, affecting the way information is processed and learned.

Negative Stereotypes

Preconceived and oversimplified beliefs or ideas about certain groups or individuals that are generally harmful and not based on factual evidence.

Attributional Ambiguity

A psychological phenomenon where individuals are uncertain if the treatment they receive, especially in terms of success or failure, is based on their abilities or on stereotypes and biases associated with their social identity.

Negative Experiences

Unpleasant or harmful events or interactions that can impact an individual's mental, emotional, or physical well-being.