Paralegal Margaret Is Interviewing Witness Dave About a Car Accident

question 110

Multiple Choice

Paralegal Margaret is interviewing witness Dave about a car accident he witnessed.

• A) immediately begin questioning Dave about the details of the accident.
• B) stick strictly to her prewritten questions.
• C) spend a minute or two chatting casually.
• D) avoid small talk.

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Definitions:

Nonrecourse Liabilities

Nonrecourse liabilities are obligations where the lender's recovery options in case of default are limited to the collateral securing the loan, not the borrower's other assets.

At-risk Amount

The maximum amount of money an individual could lose in an investment, which has implications for tax deductions on certain types of losses.

At-risk Amount

The amount of money an investor could lose in an investment, emphasizing the capital actually at risk.

Passive Loss Rules

U.S. tax regulations that restrict the amount of losses investors can claim from passive activities to the amount of income generated by those activities.