Which of the Following Is True of the Discussion Section

question 105

Multiple Choice

Which of the following is true of the discussion section of the internal legal memorandum?

• A) This section does not require relating the legal findings to the facts.
• B) This section is the core of the legal memo.
• C) The reader does not expect to find a thorough analysis of the law in this section.
• D) You should rely heavily on quoted material.

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Definitions:

Interest Tax Shield

The reduction in income taxes that results from taking a deductible charge, such as interest on debt, reducing taxable income.

Tax

Compulsory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Capital Structure

The mix of different forms of external funds and equity used by a firm to finance its overall operations and growth.

Debt-Equity Ratio

This metric calculates the relative use of debt and shareholders' equity in financing assets for a company.