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Dale Is an Employee of Big State University Who Also

question 51

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Dale is an employee of Big State University who also does some independent consulting to supplement income.Because consulting engagements are infrequent, Dale has not purchased insurance for the company.If Dale requires consulting clients to pay in cash, which of the following risk exposures is most serious?


Definitions:

GDP Deflator

An indicator for the pricing levels of all new, domestically produced, consumable goods and services within an economy.

Population

The total number of people living in a specific area or country at a given time.

Net Domestic Product

The sum of the market value of all domestically produced goods and services in a country during a given time period, subtracting the loss in value from depreciation.

Indirect Business Taxes

Taxes levied on the production, sale, or consumption of goods and services, such as sales tax or value-added tax (VAT), indirectly paid by consumers.

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