An "Implied" Warranty Will Consist of

question 26

Multiple Choice

An "implied" warranty will consist of

• A)both a warranty of merchantability and a warranty of fitness for purpose.
• B)only a warranty of merchantability.
• C)only a warranty of fitness for purpose.
• D)neither a warranty of merchantability nor a warranty of fitness for purpose.

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Definitions:

Limited Liability

A legal structure that limits the financial liability of the owners of a business to their investment in the company.

Indefinite Business Life

A term indicating that a company or asset is expected to operate or remain useful without a foreseeable limit or end date.

Corporation

A legal entity that is separate and distinct from its owners, who are shareholders. It can own assets, incur liabilities, and is subject to taxation.

International Financial Reporting Standards

A set of globally accepted accounting principles and standards that guide the preparation of financial statements.