Explain What Taking a Physical Inventory Is and Why It

question 23

Essay

Explain what taking a physical inventory is and why it is done.

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Definitions:

Exemption Clause

Contractual terms that aim to limit or exempt a party from liability or obligation in certain situations; a reiteration emphasizing its role as a liability limiter.

Fundamental Breach

A severe violation of a contract that permits the hurt party to terminate the agreement and possibly seek damages.

Restraint Of Trade

Any activity or agreement that restricts competition or the free operation of the market, often regulated or prohibited by law.

Consumer Transaction

A deal or agreement between a seller and a buyer for the purchase of goods or services for personal, family, or household use.