The Privity Rule Has Been

question 11

Multiple Choice

The privity rule has been:

• A) relaxed in its application by some courts.
• B) abandoned by all states.
• C) retained by all states.
• D) none of the above.

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Definitions:

Indirect Method

A way of calculating cash flows from operating activities for the cash flow statement by adjusting net income for changes in non-cash items.

Quality

The degree of excellence of a product or service, or its conformity to established standards or specifications.

Income Ratio

A financial metric used to gauge a company's profitability by comparing its income to other relevant figures, such as sales or assets.

Business Operations

The day-to-day activities involved in running a business, which include producing goods, providing services, and selling to customers.