A Major Drawback of Using Historical Results for Judging Current

question 6

Multiple Choice

A major drawback of using historical results for judging current performance is that _____.

• A)past results may be incorrect
• B)results may refer to a different manager
• C)inefficiencies may be concealed in the past performance
• D)all of these answers are correct

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Definitions:

Professional Corporation

A business entity formed by licensed professionals, such as lawyers or doctors, allowing them to provide their services through a corporate structure.

Sole Proprietorship

A form of business owned and operated by one person who is solely responsible for all its operations and debts.

Attorneys

Licensed professionals who are authorized to practice law, representing and advising clients in legal matters.

Associate Attorney

An attorney working for a law firm who is not a partner and does not have an ownership interest in the firm. Associates are usually less experienced attorneys and may be invited to become partners after working for the firm for several years.