Burger Barn Has Been Named as a Plaintiff in a $5

question 102

Multiple Choice

Burger Barn has been named as a plaintiff in a $5 million lawsuit filed by a customer over the addictive nature of the company's french fries.Burger Barn's attorneys have advised them that the likelihood of a future obligation from the suit is remote.As a result of the lawsuit,Burger Barn should:

• A)Disclose the lawsuit in the notes to the financial statements.
• B)Recognize a $5 million liability on its balance sheet for the contingency.
• C)Ignore the lawsuit in its financial statements.
• D)Settle with the customer immediately for $5 million to avoid harmful publicity.

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Definitions:

Social Entrepreneurship

The practice of applying business principles and strategies to develop, fund, and implement solutions to social, cultural, or environmental issues.

Diversity

The inclusion of individuals representing more than one national origin, color, religion, socioeconomic stratum, sexual orientation, etc.

Job Embeddedness

The extent to which an employee feels attached to their job and company, influencing their likelihood to stay.

Ethnocentrism

The belief in the inherent superiority of one's own ethnic group or culture, often leading to prejudice and discrimination.