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NEW QUESTION # 45
Liability limitation often focuses on which of the following types of loss, which is said to be the most unpredictable and most significant in the case of a default on a contract?
Answer: A
Explanation:
Consequential loss is considered the most unpredictable and significant, hence it is often the focus of liability limitations.
NEW QUESTION # 46
Salvador Ltd is a manufacturer of batteries for domestic appliances and hand tools. The company recently expanded due to excellent sales and introduced new machinery for producing solar-powered batteries.
They contracted Sunshine Ltd to build and install the machinery.
The contract specified that the machine must produce 5 batteries per hour, but currently, it is producing only 4 batteries per hour.
Salvador Ltd has agreed to work with Sunshine Ltd to resolve the issue within one month before liquidated damages apply.
Q: What stage is the project at?
Answer Options:
Answer: C
Explanation:
This is provisional acceptance (p.11). Salvador Ltd has accepted the machinery provisionally while Sunshine Ltd works on increasing capacity within the agreed timeframe. It is not at mechanical completion because further adjustments are needed. It is also not at performance testing since the machinery is not being tested at full capacity. Commercial operation would indicate that the project is fully completed, which it is not. [P.10-11]
NEW QUESTION # 47
Juno is completing a Variance Analysis on the sales department's spend for the first quarter. He concludes that there is a Favourable Variance. What does this mean?
Answer: C
Explanation:
A favourable variance means that the actual performance was better than expected.
NEW QUESTION # 48
A positive work culture can lead to which of the following benefits? Select all that apply
Answer: A,C,E
Explanation:
Improved performance, increased productivity, and higher retention are benefits of a positive work culture.
NEW QUESTION # 49
Casper is conducting a Variance Analysis of the company's budget. What is its main purpose?
Answer Options:
Answer: C
Explanation:
A Variance Analysis (p.95) compares planned vs. actual budget and identifies inefficiencies to enhance financial performance. Option A focuses only on overspending, B on cost-cutting, and D on categorizing costs rather than improving efficiency. [P.95]
NEW QUESTION # 50
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