Accounting for Profits Might Be an Appropriate Award in Which

question 59

Multiple Choice

Accounting for profits might be an appropriate award in which of the following cases?

• A)A company's sales dip a year after a competitor develops a similar line of product.
• B)An Internet service provider loses some of its customer base after Internet cable is made available in a community.
• C)The holder of patent on a special electric car battery is caught off-guard when a competitor begins successfully selling unlicenced identical car batteries.
• D)A company known for interfering with patents disassembles a patented electric toothbrush to discover how the toothbrush works.
• E)Someone publishes a new edition of Shakespeare's collected works.

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Definitions:

Bank Capital

The funds that are held by a bank that are used as a cushion against potential losses, ensuring the bank's stability and financial health.

Invested Capital

The total amount of money that shareholders and debt holders have invested in a company for long-term use.

Gross Assets

The total asset value on a company's balance sheet before deducting any liabilities or depreciation.

Capital Asset Ratio

This ratio measures a bank's financial strength by comparing its capital to its assets, assessing the bank's ability to withstand losses.