Able and Baker Are Both Residents of Iowa, but They

question 67

Multiple Choice

Able and Baker are both residents of Iowa, but they have a dispute regarding some land located in Kansas. Able gives Baker reasonable notice that she is filing a lawsuit in Kansas regarding the land and Baker objects, claiming the Kansas courts have no jurisdiction. In this case:

• A) only the Iowa courts can hear the case.
• B) the Iowa federal district court can hear the case based on diversity of citizenship.
• C) the Kansas courts have in rem jurisdiction to adjudicate the claim regarding the property.
• D) the Kansas federal district court can hear the case based upon diversity of citizenship.

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Definitions:

Cost Behavior

The way in which a cost changes in relation to changes in activity levels, categorized into fixed, variable, and mixed costs.

Margin Of Safety

A figure that indicates the possible decrease in sales that may occur before an operating loss results; may be expressed in terms of sales dollars, sales units, or percent of current sales.

Unit Selling Price

The price at which a single unit of a product or service is sold, not accounting for discounts or modifications.

Sales

The revenue generated from the sale of goods or services by a company during a particular period.