When Considering Whether or Not It Is Worthwhile to Commence

question 57

Multiple Choice

When considering whether or not it is worthwhile to commence an action or lawsuit,a prudent business manager must consider

• A)the staggering costs of the litigation,even if winning appears to be a certainty.
• B)that even if winning appears to be a certainty,it may be impossible to collect any money from the defendant.
• C)that there is always a risk of losing and having to pay the legal costs of the other party.
• D)that even if winning appears to be a certainty,the litigation may take up a huge amount of the business manager's time,which would be better spent concentrating on the business.
• E)all of the above

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Definitions:

Cost Of Merchandise Sold

The total cost incurred by a business to sell its products, including the purchase price and other expenses directly related to procurement.

Journal Entry

A record in accounting that records a transaction, indicating the accounts and amounts debited and credited.

Cost Of Merchandise Sold

The total cost incurred to obtain goods sold by a company during an accounting period; it includes purchase price, freight in, and other costs related to procurement.

Periodic Inventory System

An accounting method that tracks inventory purchases and sales periodically, typically at the end of an accounting period.