Mark Is an Engineer Who Has Designed a Telecommunications Device

question 65

Multiple Choice

Mark is an engineer who has designed a telecommunications device. He is convinced that there is a big potential market for the device. Accordingly, he has decided to quit his present job and start a company to manufacture and market the device.
-Rent on the administrative office space is:

• A) a variable cost
• B) an opportunity cost
• C) a period cost
• D) a product cost

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Definitions:

Frustration

A legal doctrine freeing both parties from their contractual obligations if an unexpected event renders the contract impossible to fulfill.

Contract Law

The body of law that governs the formation, performance, and enforcement of agreements between parties.

Statute

A written law passed by a legislative body.

Equitable Remedies

Court-imposed solutions based on fairness to resolve a dispute, including injunctions and specific performance.