Becoming a Sophisticated Client Will

question 8

Multiple Choice

Becoming a sophisticated client will

• A) ensure that a business person never needs a lawyer.
• B) help a business person manage her legal affairs more efficiently and effectively.
• C) result in a business person developing a bias against lawyers.
• D) relieve a business person from having to conduct legal research.
• E) protect a business person from needing legal advice.

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Definitions:

Net Sales

The amount of sales revenue remaining after deducting returns, allowances for damaged or missing goods, and discounts from the total sales.

Gross Profits

The difference between net sales and the cost of goods sold, indicating the basic profitability of the products or services sold.

Times Interest Earned Ratio

A debt management ratio indicating the degree of risk to lenders that a company will default on its interest payments. Also called interest coverage ratio.

Return on Sales Ratio

A measure of a company's operational efficiency, calculated by dividing operating profit by net sales.