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question 15

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To improve readability and comprehension through white space,

Describe the characteristics of a sophisticated client.
Comprehend the types of advice and information a lawyer can offer to a new business owner.
Identify and explain the different methods for calculating legal fees.
Learn how to find and select an appropriate lawyer for a business.

Definitions:

Collection Time

The duration it takes for a business to receive payments owed by its customers.

Lockbox System

A service provided by banks to companies for the receipt of payment from customers, whereby payments are sent directly to a post office box, rather than to the company, to expedite the deposit process.

Clearing Process

The procedure by which financial trades settle; that is, the correct and timely transfer of funds to the seller and securities to the buyer.

Zero-Balance Account

A bank account which maintains a balance of zero by automatically transferring funds from a master account in an amount only large enough to cover checks presented.

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