Mark Walton Was Involved in a Car Accident in Which

question 69

Multiple Choice

Mark Walton was involved in a car accident in which the airbag of his car failed to deploy. He sued the car manufacturer for installing faulty airbags. But in the course of the case being heard in court, the car company and Mark decided to settle the lawsuit out of court. What important function of the law was served in this case?

• A) promoting social justice
• B) maximizing individual freedom
• C) providing a basis for compromise
• D) maintaining the status quo

---

Definitions:

Planning Budget

A budget prepared before the period begins, based on projected levels of activity; acts as a guideline for income, expenses, and financial goals.

Spending Variance

A measure indicating the disparity between what was anticipated to be spent and what was actually expended in financial terms.

Employee Salaries

The monetary compensation paid to employees for their labor, typically on a monthly or yearly basis.

Net Operating Income

The total profit of a company after operating expenses are subtracted from gross profit, but before income taxes and interest are deducted.