Trust Account Funds Can Be Used to _______________________

question 25

Multiple Choice

Trust account funds can be used to _______________________. ​

• A)pay for law office rent
• B)pay the law office for fees that have now been earned
• C)pay for staff payroll if the staff members worked on the client's case
• D)make a deposit into the law office operating account if the funds will be repaid
• E)none of the above

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Definitions:

Tobin's Separation Property

A principle in investment theory that suggests the investment decision can be separated from the financing decision, primarily developed by James Tobin.

Risk Aversion

The inclination to avoid taking risks, preferring safety over potential higher returns.

Optimal Risky Portfolio

A portfolio that offers the highest expected return for a given level of risk.

Systematic Variance

The portion of a security's return variance that is attributable to macroeconomic factors and cannot be diversified away.