Suppose a Plaintiff Hires a Lawyer to Represent Her in a Court

question 93

Multiple Choice

Suppose a plaintiff hires a lawyer to represent her in a court case. The lawyer will be paid a fixed fee. Under this contract,

• A)efficiency is achieved.
• B)the client bears all of the risk.
• C)the lawyer has an incentive to lie about his hours worked.
• D)All of the above.

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Definitions:

Assets

Resources owned by a company that have economic value and are expected to provide future benefits.

Rent Expense

The cost incurred by a business for leasing a property or equipment for operational purposes.

Income Summary

An account used in the closing process that summarizes the results of all revenue and expense accounts.

Capital

The wealth, whether in money or other assets, owned or employed in business by an individual, firm, or corporation.