A corporation has been sued for product failures allegedly resulting in injuries to the individuals bringing the lawsuit
The company's lawyers believe it is more than remote, but less than probable, that the lawsuit will result in an actual liability. Which of the following actions should be taken by the company's management?
A) The liability should be estimated and recorded as an expense.
B) The situation should be described in a note to the financial statements.
C) The possible liability should be ignored.
D) Management should consider resigning.
B
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How is a life insurance policy dividend legally defined?
A) A return of excess premium and partially taxable B) A return of excess of premium and fully taxable C) A return of excess premium and not taxable D) A return of excess premium subject to capital gains tax
Table 10-4 represents a solution to a goal programming problem. There are three goals (each represented by a constraint). Which goals are only partly achieved?
A) number 1 only B) number 1 and number 2 C) number 2 and number 3 D) number 1 and number 3 E) None of the above