A Business Owner Has a Duty to Use Reasonable Care

question 10

True/False

A business owner has a duty to use reasonable care to protect its customers against foreseeable risks about which the owner should have known.

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Definitions:

Contribution Margin

The difference between sales revenue and variable costs, illustrating how much revenue contributes towards covering fixed costs and generating profit.

Accounting Break-Even

Represents the sales amount at which a business covers its operating costs without making a profit or a loss.

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life, reflecting the decrease in value over time.

OCF

Operating Cash Flow, which indicates the amount of cash generated by a company's normal business operations.