The Vast Majority of Civil Cases Never Make It to Trial

question 72

Multiple Choice

The vast majority of civil cases never make it to trial. Which of the following is not a reason that a case may fail to proceed to trial?

• A) The judge dismisses the case.
• B) The judge determines in pretrial activities that insufficient evidence exists.
• C) The two parties settle the case out of court.
• D) One or both of the parties do not show up.
• E) The court rules that it does not have jurisdiction in the case.

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Definitions:

Average Sale Period

This measure indicates the average duration it takes for a company to turn its inventory into sales.

Operating Cycle

The duration of time from the acquisition of inventory to the collection of cash from receivables, reflecting the company's efficiency in using its assets.

Times Interest Earned

A financial ratio that measures a company's ability to cover its interest charges with its earnings before interest and taxes (EBIT).

Debt-To-Equity Ratio

A calculation to determine a firm's financial leverage by dividing the total amount of its liabilities by the equity of its shareholders.