Product liability created a business opportunity for the legal profession but frivilous lawsuits are very costly to business. As such the costs are passed on to customers in the cost structure of the business. True False

Product liability created a business opportunity for the legal profession but frivilous lawsuits are very costly to business. As such the costs are passed on to customers in the cost structure of the business. True False

Business Its Legal Ethical & Global Environment

10th Edition

ISBN:9781305224414

Author:JENNINGS

Publisher:JENNINGS

Chapter19: Governance And Regulation

Section: Chapter Questions

Problem 1DQ

See similar textbooks

Related questions

Q: A written code of ethics is a document for reference: it is never actively enforced or practiced in…

A: Disclaimer: "Since you have asked multiple questions in a single question so we answered the first…

Q: rue or False: Effectiveness is doing the right things of completing activities so that the…

A: The basic meaning of effectiveness in Management is that the concerned person/team has a capability…

Q: What can be Consquences of Unethical Behaviour?

A: Please note - Due to multiple questions, we can answer only first question as per policies.

Q: (Political Motivations for Policies) Ever since the unethical actions of some employees of Enron…

A: Accounting policies refers to the rules and regulations which is implemented on the management of…

Q: Discuss the dangers of ignoring the impact of business decisions on the full range of stakeholders,…

A: In every business, decision-making is the most important thing for business continuity. Businesses…

Q: identify all factors which might cause an accounting firm to decide not to retain a client or to…

A: An accounting firm serves businesses, individual, and corporation in preparing their financial…

Q: Mark is working as a Project Engineer in one of the IT firm. In providing IT services to a potential…

A: Because you have posted multiple questions, we will answer the first question only, for the…

Q: The IESBA Code of Ethics for Professional Accountants highlights a number of areas in which threats…

A: Advocacy threat refers to the threat which exists when the auditor is involved in promoting the…

Q: Managers of corporations need to act in an ethical manner O because ethical behavior is its own…

A: Managers of corporation are the representatives of the company or corporation. They must act…

Q: Mr. Bader is leaving the accounting practice to become the Finance Director of a client company. The…

A: The principles of the code of ethics are: Objectivity Integrity Confidentiality Professional…

Q: Sun packaging is a profit-making manufacturing company established during 1998. The company is not…

A: Answer 1: Stakeholders are the owner's of the company which is represented by the number of equity…

Q: Objectivity refers to the obligation that all members of the professional bodies: a. be…

A: A professional body is an organization whereby the individual members practice their profession.

Q: Most managers have no difficulty avoiding blatantly dishonest actions. But sometimes there are gray…

A: Corporate ethical dilemma is a situation where a company needs to choose between a morality and…

Q: nternal control does not consist of policies and procedures that Select one: a. Ensure that business…

A: Internal controls are the procedure that are implemented by an entity to ensure that the financial…

Q: True or False 1. A manager could be held criminally liable for the misdeeds of the company 2. It is…

Q: Is it an entity inherent risk for a president of a company to review product costs and adjusts the…

A: The possibility that an auditor may provide an unqualified opinion on financial accounts that are…

Q: Why the corporate social responsibility activities have negative implication on the accounting…

A: The costs paid to do CSR activities are basically expensed from the company money. In the short…

Q: agency costs may occur if A. Managers make decisions for their own best interest B. Managers may…

A: Agency costs refer to the expenses incurred by a principal-agent relationship due to conflicts of…

Q: Do some research (use sources other than your prescribed textbook) and explain why it is important…

A: Business ethics play a very important role in financial management. It is very essential for…

Q: Some argue against corporate involvement in socially responsible behavior because the costs incurred…

Q: Why are internal accounting controls important to a business? What are advantages vs. the…

A: Internal control refers to a systematic procedure to be followed by the personnels of a company to…

Q: Ethics Codes help companies to keep a standardized way to take decisions else the decision can be…

A: Unethical behaviour is described as activities that violate societal norms or are deemed…

Q: Discuss why in many liability firms, the managers do not receive a fixed payment for their work, but…

A: Profits or sales. Sales are simply referred to as "revenue," which does not include any fees or…

Q: Which of the following statements is false regarding the ethical obligations of professional…

A: Professional ethics refers to the set of moral principles, values, and standards that guide the…

Q: B) The C.E.O. explains that the company is facing severe competition in the market place and has…

A: CVP Analysis: When it comes to cost-volume-profit (CVP) analysis, it is a method of determining how…

Concept explainers

Contingent Liabilities and Provisions

A contingent liability can be defined as a liability the occurrence of which is dependent upon the happening of an uncertain future event. It is generally recorded in the books only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly.

Question

Product liability created a business opportunity for the legal profession but frivilous lawsuits are very costly to business. As such the costs are passed on to customers in the cost structure of the business.

True

False

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Accounting for Current liabilities, Provisions and Contingencies

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

B) The C.E.O. explains that the company is facing severe competition in the market place and has heard about the use of Cost Volume Profit Analysis to assist in the decision making process. He is however unsure about the analysis and how it can be of use in the business, and is seeking your help to determine: 1) What is C.V.P. Analysis and how it can be used to improve the profitability of the business. The C.E.O. then asks your advice on two sets of actions currently being considered by the company to increase its Net Income. The company currently has sales of $ 350,000, representing 5,000 units. Its variable costs are $ 250,000 and the fixed costs are $ 60,000. The alternatives being considered are: a) Increase Selling Price by 10% b) Reduce variable cost to 70% of Sales. You are asked to: 1) Compute the Net Income that will be earned under each alternative. 2) Advise the CEO as to which alternative would best suit the company's requirements.
All of the following conditions are likely to make ESG issues financially material (relevant) to a firm, except: O when it becomes easier for management and stakeholders ot gain insight into a company's environmental or socal impact. when the media and NGOS have more power and politicians are more responsive to ESG issues. when companies have the ability to effectively self-regulate O when a company develops a differentiated service or product that replaces a "dirty" or unsustainable way of doing business.
Describe a nonmanufacturing business that could benefit from the use of standards. Also, explain how standards would help that business control its operations.
Describe a nonmanufacturing business that could benefit from the use of standards. Additionally, explain how standards would help that business control its operations.
In which of the following situations is a company most likely to benefit from implementing ABC? When the company operates in an environment where the risk of cost distortion is high. When the company already has the necessary accounting and technological expertise in place. When the company has very few competitors. When the company produces and sells a single product.
Discuss the dangers of ignoring the impact of business decisions on the full range of stakeholders, as applied in your business situation.
need help with this
A cost center is a responsibility center of a company which incurs losses. incurs costs and generates revenues. only incurs costs and does not directly generate revenues. is a responsibility center which generates profits and evaluates the investment cost of earning the profit.
Indicate whether each of the following statements is true or false. 1. When designing an accounting system, we need to think about the needs and knowledge of both the top managers and various other users. 2. When the environment changes as a result of technological advances, increased competition, or government regulation, an accounting system does not have to be sufficiently flexible to meet the changes in order to save money. In developing an accounting system, cost is relevant. The benefits obtained from the information disseminated must outweigh the cost of providing it. 3. >
Ethics Codes help companies to keep a standardized way to take decisions else the decision can be biased. Unethical behaviors can damage the reputation of the company. Also if companies do not take strong measures against these then these can have a negative impact on others. The public or other stakeholders' interest can be subdued by personal interest. The impact of unethical behavior can have a long-term effect on any company's operation. Saint Leo's core values are Excellence, Community, Respect, Personal Development, Responsible Stewardship, and Integrity. Unethical behavior does not comply with any of it.
Why the corporate social responsibility activities have negative implication on the accounting valuation of a company? O a. CSR activities are done at the cost of the company. O b. CSR activities are done for the benefit of the community. O C. CSR activities are done for the benefit of the company. O d. CSR activities are done at the cost of the community. 8:44 AM
1.