A Customer Slipped and Fell on a Wet Floor at Melvin's

question 120

Multiple Choice

A customer slipped and fell on a wet floor at Melvin's T-Shirt Emporium. Melvin was found liable for the customer's injuries and had to pay $30,000 in medical bills for the customer out of his own pocket. Melvin's T-Shirt Emporium is a

• A) sole proprietorship.
• B) partnership.
• C) corporation.
• D) limited liability company.

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Definitions:

Differential Cost

is the change in a company's cost of producing goods or services under two different action alternatives, essentially the cost difference between two choices.

Unused Capacity

The available but not utilized production ability of a company which could potentially generate revenue if employed.

Unit Cost

The cost incurred to produce, store, or acquire one unit of a product, calculated by dividing the total cost by the number of units.

Differential Cost

The difference in cost between two alternative decisions or scenarios.