Explain Why It Is Permissible to Pick Up a Load

question 28

Essay

Explain why it is permissible to pick up a load with wire rope block and tackle when the load is even heavier than the breaking strength of the wire rope.

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Definitions:

Unrealized Gain

The hypothetical profit on an investment that has not yet been sold, and thus, not yet converted into actual cash.

Hedged Item

An asset, liability, or planned transaction exposed to price risks that are offset by using a hedging instrument.

Anticipated Transaction

A future financial operation or deal that is expected to occur.

Existing Asset

Assets that are currently in possession or use by a company, as opposed to newly acquired or disposed assets.