Knowing the Law Can Help Non-Lawyers To

question 60

Multiple Choice

Knowing the law can help non-lawyers to:
i.avoid serious legal problems before they arise.
ii.better organise their business and personal lives.
iii.give professional legal advice.
iv.be aware of their rights and obligations in everyday transactions.

• A)i, ii, iii.
• B)ii, iii, iv.
• C)i, iii, iv.
• D)i, ii, iv.

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Definitions:

Zero Profit

A situation where a business's revenues exactly match its expenses, resulting in no net profit.

Unit Contribution Margin

The difference between the selling price per unit and the variable cost per unit, indicating how much each unit contributes to covering fixed costs.

Fixed Costs

Costs that do not vary with the volume of production or sales, such as rent, salaries, and insurance.

Contribution Margin Ratio

A financial metric that shows the portion of sales revenue that is not consumed by variable costs and therefore contributes to covering fixed costs.