When Providing the Factual Background in an Internal Legal Memorandum

question 44

Multiple Choice

When providing the factual background in an internal legal memorandum, you should

• A) omit facts that are unfavorable to the client.
• B) include irrelevant law information to make the facts section look more impressive.
• C) use lots of legalese.
• D) present an objective summary of key facts.

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Definitions:

Operating Profit

Income derived from normal business operations after subtracting operating expenses and cost of goods sold, also known as operating income.

Capacity

The maximum amount that something can contain or produce.

Variable Costs

Costs that change in proportion to the amount of goods produced or the volume of sales, like labor and materials.

Contribution Margin Ratio

The ratio that represents what percentage of sales contributes to the covering of fixed costs, calculated by subtracting variable costs from sales revenue and dividing the result by sales revenue.