Andy Dungy Owns a Company That Makes Apple IPod, IPhone

question 55

Multiple Choice

Andy Dungy owns a company that makes Apple iPod, iPhone, and iPad accessories. He is trying to increase his sales, primarily because he knows that increasing production lowers the average cost of each unit produced. The reason for growth illustrated in this example is:

• A) economies of scope
• B) market leadership
• C) influence, power, and survivability
• D) need to accommodate the growth of key customers
• E) economies of scale

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Definitions:

Liquidated Damages

A predetermined amount of money that must be paid as damages for failure to perform under a contract, agreed upon when the contract is formed.

Special Damages

Compensation awarded for specific, quantifiable financial losses incurred due to an injury or breach of contract.

Remedy Limitation

A legal principle specifying the conditions or time frames within which a remedy, such as filing a lawsuit or making a claim, must be initiated.

Prima Facie Unconscionable

A legal term indicating that an agreement or term appears, at first sight, to be excessively unfair or unjust.