Unless Properly Disclaimed, a Warranty Is Implied That Sold or Leased

question 50

Multiple Choice

Unless properly disclaimed, a warranty is implied that sold or leased goods are fit for the ordinary purpose for which they are sold or leased, as well as other assurances, known as the implied warranty of ________.

• A) volatility
• B) cause of action
• C) assertion
• D) merchantability

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Definitions:

Retained Earnings

Profits that a company keeps after dividends have been paid out to shareholders, used for reinvestment in the business or to pay down debt.

Capital

Resources made and used by people to produce and distribute goods and services; includes tools, machinery, and buildings.

Interest Rates

Charges applied on borrowed money or earned through deposits, varying according to the type, term, and risk associated with the financial product.

Present Value

The present value of a future sum of money or series of cash flows, discounted at a certain rate of return.