Dwayne,an Electrician,files a Suit Against Electro Mechanix,Inc

question 9

Multiple Choice

Dwayne,an electrician,files a suit against Electro Mechanix,Inc. ,alleging that its circuit breakers are unreasonably dangerous due to the possibility of electrical shock.Dwayne's suit is most likely to

• A)fail,because Dwayne assumes the risk if he uses an Electro product.
• B)fail,because Dwayne is a knowledgeable user.
• C)succeed,because the danger is open and obvious.
• D)succeed,because Electro's products are not safe for all uses.

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Definitions:

Net Income

The residual income of a company after total revenue has been diminished by all costs and taxes.

Cash Flows

The net amount of cash being transferred into and out of a business, especially considered important for assessing liquidity, flexibility, and overall financial health.

Indirect Method

An approach to preparing the cash flow statement where net income is adjusted for changes in balance sheet accounts to calculate cash from operating activities.

Operating Activities

The section of a business's cash flow statement that accounts for its core business operations' cash inflows and outflows, involving receipts from sales, payments to suppliers, and payroll.