Vista Properties,Inc

question 59

Multiple Choice

Vista Properties,Inc. ,leases an office building to World Corporation.At the time,the amount of damages on World's default is difficult to de?termine,so the parties reasonably estimate,and the lease provides,that if World defaults,Vista is entitled to $50,000 as "liquidated damages." This amount is

• A)an unenforceable limitation of liability.
• B)an unenforceable penalty.
• C)liquidated damages.
• D)punitive damages.

---

Definitions:

Total Output

The total quantity of goods or services produced by a firm or economy in a given period.

Fixed Amount

A specific, unchanging quantity or sum, often used in financial contexts to denote a constant payment or investment.

Accounting Profits

The profit or loss recorded on a company's financial statements, calculated as revenues minus expenses and taxes.

Economic Profits

The difference between total revenue and total costs, considering both explicit and implicit costs.