Barbara Left a Skateboard on Her Front Steps

question 38

Multiple Choice

Barbara left a skateboard on her front steps. Her neighbor tripped on the skateboard and was injured. The skateboard was a

• A) Hazard.
• B) Negligence.
• C) Peril.
• D) Premium.
• E) Risk.

Identify the requirements for forming, operating, and dissolving various business entities.

Differentiate between types of partnerships and their specific features.

Explain the concept of limited liability and how it applies to different business organizations.

Understand the role of shareholders, directors, and officers in a corporation.

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Definitions:

Consumer Surplus

The difference between what consumers are willing to pay for a good and what they actually pay, representing the benefit consumers receive from purchasing the good at a lower price.

Price Floor

A government- or group-imposed price control that sets the lowest price at which a product can be sold.

Price Support

Government interventions to maintain the price of a commodity or product at a certain level, often through purchasing excess supply or providing subsidies to producers.

Government Policy

Official strategies or principles that a government adopts to guide decisions and actions in a particular area, such as economic policy.