It's A - fear. <span>This text exploits human fears for unpredictable events: car accident, illness, handicap etc</span>
Answer:
D) As a disclosure only. No liability is reported
Explanation:
US GAAP requires that probable contingent liabilities (like lawsuits) are disclosed in the footnotes of the financial statements. If it is probable that the liability will exist, in this case that Hillsborough will lose the case, then they must record the contingent liability at its most reasonable amount. If the amount cannot be estimated, then they must record it at its lowest amount. The key word is "probable", since it must be likely that the event occurs in order for it to be recorded in the footnotes.
<span>B. You may invite competition as you expand to different areas of the market with different competitors. </span>
