Baseball Fans Who Willingly Sit Where They Might Be Hit

question 416

Multiple Choice

Baseball fans who willingly sit where they might be hit by a stray baseball during the normal course of play are:

• A) assuming the risk of being hit by a stray baseball
• B) prime candidates for bringing a negligence tort action against any player who hits a ball into the stands
• C) unknowingly putting themselves in danger
• D) covered by the baseball players' "assumption of risk" insurance
• E) none of the other choices

---

Definitions:

Ordinary Gain

A gain resulting from the sale or exchange of assets that are not capital assets, taxed at ordinary income tax rates.

Profit

The amount of revenue that remains after deducting the expenses, taxes, and costs associated with generating that revenue.

Operating Leases

Leases where the lessor retains substantial risks and rewards of ownership of the asset while leasing it to the lessee.

Note Disclosure

Informative notes accompanying financial statements, explaining the basis of preparation and detailing specific accounting policies.