You Are a Manager at a Medium-Sized Start-Up Company That

question 58

Essay

You are a manager at a medium-sized start-up company that is well positioned in the online intermediary market.One of your colleagues has asked you to offer some advice about the liability of online intermediaries.Provide a brief introduction to this issue.Illustrate your answer with business law examples.How can a business shield itself from intermediary liability?

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Definitions:

Activity-based Costing

An accounting approach which attributes overheads and indirect costs to specific activities related to production, offering more precise cost information.

Limitation

A restriction or boundary that defines the scope or extent of something, such as a study or a project.

Direct Labour-based Costing System

A method of cost accounting that allocates expenses based primarily on the direct labor hours incurred in producing a product or delivering a service.

Overstated Costs

A situation where the reported cost of goods sold or expenses are higher than the actual costs incurred, potentially leading to a lower reported profit.