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:

Shorting Index Futures

A strategy involving the sale of index futures contracts to profit from an anticipated decline in the value of the underlying index.

Longing Steel Futures

The act of buying futures contracts in steel, betting that the price of steel will increase over the term of the contract.

Treasury Bond

Long-term, fixed-interest U.S. government debt securities with maturities over ten years, considered low-risk investments.

Futures Contract

A contractual agreement regulated by law, specifying the sale or purchase of an item at a fixed price, to be executed at a later date.