The Bedrock Principle of Business Is That It Should ________

question 21

Multiple Choice

The bedrock principle of business is that it should ________.

• A) please its customers
• B) advertise better than its competitors
• C) earn a profit
• D) continually improve

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Definitions:

Liquidated Damages

A predetermined amount of money that must be paid as damages for failure to perform under a contract.

Reliance Damages

Compensation awarded for losses suffered as a result of relying on a promise or agreement, even if a contract was never formalized.

Lost Profits

Refers to the income that a business could have earned but was unable to due to some form of disruption or another party's actions.

Misrepresentation

A false statement of fact made by one party to another, which has the effect of inducing that party into a contract.