If Causal Connection Between a Person's Act and the Resulting

question 275

Multiple Choice

If causal connection between a person's act and the resulting harm to another is broken by an intervening act or event, the act or event is called:

• A) proximate cause
• B) unforeseen cause
• C) superseding cause
• D) foreseeable cause
• E) none of the other choices

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Definitions:

Breaking Even

The situation in which a firm is earning exactly a normal rate of return.

Economic Profit

This refers to the surplus remaining after subtracting both visible and hidden costs from total revenues, highlighting a firm's genuine financial gain.

Annual Profit

Annual profit refers to the total profit a business earns over the course of a fiscal year, accounting for all revenues minus expenses during that period.

Variable Costs

Costs that vary directly with the level of production or service activity, such as materials and labor.