Countries with a ________ Legal System Tend to Encourage Precise

question 62

Multiple Choice

Countries with a ________ legal system tend to encourage precise, detailed contracts, whereas countries with a ________ legal system tend to encourage shorter and less specific contracts.

• A)theocratic; mixed
• B)common; civil
• C)civil; customary
• D)customary; common

---

Definitions:

Fixed Costs

Costs that do not change with the level of output or sales, such as rent, salaries, and insurance.

Depreciation Expense

An accounting method used to allocate the cost of a tangible asset over its useful life, representing how much of an asset's value has been used up over time.

Tax Credit

A reduction in the amount of taxes owed, dollar for dollar, for various types of investments or expenses.

Discount Rate

The interest rate used to determine the present value of future cash flows in discounted cash flow analysis, reflecting the time value of money.