Why Would a Businessperson Use Contractual Terms as a Planning

question 1

Multiple Choice

Why would a businessperson use contractual terms as a planning feature of the law?

• A) to limit liability and block the use of the parole evidence rule
• B) to limit liability and shield against possible future events
• C) to limit liability and prevent collateral oral agreements
• D) to limit liability and buffer against certain future events

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Definitions:

Payroll Period

The time frame for which employee earnings are calculated and paid, such as weekly, bi-weekly, monthly.

Unemployment Tax Rate

A tax rate assigned to an employer, based on the number of unemployment claims filed by former employees, which funds unemployment compensation programs.

Federal Income Tax

A tax levied by the IRS on the annual earnings of individuals, corporations, trusts, and other legal entities.

Gross Payroll

The total amount an employer pays to its employees before deductions, such as taxes and retirement contributions, are made.