Jill Owns a Retail Business by Herself and Was Sued

question 37

Multiple Choice

Jill owns a retail business by herself and was sued by a customer who fell in the store.The customer claimed the business was negligent in caring for its floors.Which statement best describes Jill's potential liability?

• A)Jill has no potential liability to the customer.
• B)Jill can be held personally liable to the customer since she is the owner.
• C)Jill can only be liable up to the amount she initially invested in the business.
• D)Jill cannot be held personally responsible;the woman's insurance must pay for the claim.

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Definitions:

Inputs

The resources such as labor, materials, and capital that are used in the production process to create goods and services.

Returns To Scale

The rate at which output increases in response to proportional increases in all inputs or factors of production.

Production Function

An equation that describes the maximum amount of output that can be obtained from a given number of inputs.

Output

The total amount of goods or services produced by a company, country, or economic system.