SmartTalk, Inc

question 58

Multiple Choice

SmartTalk, Inc., makes and markets cell phones and related accessories. When problems develop with SmartTalk products or sales, the company may be liable in product liability for any of the following except​

• A) ​a manufacturing defect.
• B) ​a design defect.
• C) ​an inadequate warning.
• D) ​an ineffective marketing plan.

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Definitions:

Financial Statements

Records outlining a corporation's financial health, incorporating details from the balance sheet, income statement, and cash flow statement.

Assets

Resources owned or controlled by a business that are expected to produce economic benefits.

Liabilities

Financial obligations or debts owed by a company to external parties or individuals, expected to be settled through the outflow of resources.

Materiality

An accounting principle that means the significance of financial information to decision makers, considering its size or its nature.