Remote Disposal Company Operates a Hazardous Waste Storage Facility

question 24

Multiple Choice

Remote Disposal Company operates a hazardous waste storage facility.Concerned that there may be a release of chemicals from the site,Remote sells the property to Serene Developers,Inc.If there is a release,Remote is most likely

• A)liable.
• B)not liable because the site was sold before the release.
• C)not liable because Remote was concerned about the release.
• D)not liable because Remote no longer operates the facility.

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Definitions:

Time Period Assumption

The accounting principle that allows the life of a company to be divided into time periods, such as months or years, for reporting purposes.

Company Life

A conceptual term generally referring to the length of time a company has been in business or is expected to operate.

Dodd-Frank Act

A comprehensive and complex piece of financial regulation in the United States, enacted in 2010 to prevent the recurrence of financial crises.

Clawback

A provision under which money already paid must be returned, often used in employment contracts for the return of bonuses or in investment agreements.