Unknown Hazards Are

question 251

Multiple Choice

Unknown hazards are:

• A) defects that occurred during the manufacturing process
• B) defects that the manufacturer knew about, but did not reveal to the consumers
• C) the only kind of hazard that manufacturers cannot be held liable for
• D) dangers that the consumer was aware of, but not able to avoid
• E) none of the other choices are correct

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Definitions:

Fixed Expenses

Costs that do not fluctuate with the volume of production or sales, remaining constant over a period, such as rent, salaries, and insurance premiums.

Net Operating Income

A gauge of a corporation's earnings from its main operating activities, not including the effects of interest and taxes.

Sales Increase

An upward trend in the volume or value of sales transactions over a particular period, indicating growth in business activity.

Margin of Safety

The difference between actual or projected sales and the break-even sales, indicating the amount by which sales can decline before a business incurs losses.