Ellayne Manages a Busy Law Practice as a Sole Practitioner

question 61

Multiple Choice

Ellayne manages a busy law practice as a sole practitioner.With regard to business risk management,where should serious consideration be given to have broad benefit for Ellayne?

• A) all complications arising from inability to contract for employees
• B) all adverse affects of illness or incapacity
• C) some complications arising from the hiring and firing of employees
• D) some adverse affects of taxation of profits

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Definitions:

Pledged Inventory

Inventory that has been used as collateral for a loan.

Commercial Paper

An unsecured, short-term debt instrument issued by corporations, typically used for the financing of payroll, accounts payable, and inventories.

SEC Registration

The process of filing documents required by the Securities and Exchange Commission for new securities to be sold to the public.

Treasuries

Government debt securities issued by the United States Department of the Treasury to finance government spending as an alternative to taxation.