Which of the Following Factors Does Not Explain Why the Number

question 2

Multiple Choice

Which of the following factors does not explain why the number of lawsuits and the sizes of awards to plaintiffs in cases involving CPA firms remains high even today?

• A) Attorneys are willing to take these types of lawsuits on a contingent-fee basis.
• B) Economic changes often result in an increase in the number of business failures.
• C) the deep-pocket concept of liability
• D) All of the above explain why the number of lawsuits and the sizes of the awards remain high.

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Definitions:

Activity Variance

The discrepancy between what was planned to be spent on an activity and what was actually spent.

Budgeting

The act of designing a budget to allocate your finances, enabling you to predict beforehand if you'll possess sufficient funds to cover necessary or desired activities.

Total Expenses

The sum of all costs and expenses, both operational and non-operational, that a business incurs within a particular period.

Customers Served

The number of clients or customers to whom a business has provided goods or services within a specified period.