When the Fees Charged to the Client Vary Depending on the Results

question 69

Multiple Choice

When the fees charged to the client vary depending on the results of the representation-for example, whether a lawsuit is lost, won, or settled-it is called

• A) fee splitting.
• B) double billing.
• C) value billing.
• D) task-based billing.

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Definitions:

Trust Receipt

A trust receipt is a financial document issued by a bank to a buyer who has obtained a loan to purchase goods, where the buyer agrees to hold the goods in trust for the bank until the loan is repaid.

Inventory Loans

Short-term loans or lines of credit secured by a company’s inventory, used to purchase products for sale.

Factoring Accounts Receivable

A financial transaction where a business sells its accounts receivable to a third party at a discount to immediately raise cash.

Commercial Paper

An unsecured, short-term debt instrument used by corporations to finance their immediate needs.