Which of the Following Holds a Company Liable for Damages

question 41

Multiple Choice

Which of the following holds a company liable for damages caused by a defective product even if the firm was unaware of the defect at the time of sale?

• A) network responsibility
• B) managerial liability
• C) patent infringement
• D) strict product liability

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Definitions:

Profit Centers

Divisions or departments within an organization that are responsible for generating its income.

Management Performance Report

A document that evaluates and summarizes the effectiveness and efficiency of a company's management in achieving corporate objectives.

Controllable Fixed Costs

Fixed costs that management has the authority to increase or decrease, such as advertising expenses or research and development costs.

Contribution Margin

The amount by which a product’s selling price exceeds its variable costs, indicating how much contributes to covering fixed costs and generating profit.