Which of the Following Is True About the Three Main

question 72

Multiple Choice

Which of the following is true about the three main types of legal systems?

• A)Judges under a civil law system have more flexibility than those under a common law system.
• B)The common law system evolved in the United States over hundreds of years.
• C)Although Islamic law is primarily concerned with moral behavior,it has been extended to cover certain commercial activities.
• D)A theocratic law system is based on a detailed set of laws organized into codes.
• E)Common law cannot be altered,clarified,or amended to deal with new situations.

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Definitions:

Operating Income

Income generated from regular business operations, excluding any investment income, taxes, or extraordinary items.

Selling Price

The amount of money charged for a product or service.

Net Operating Income

An accounting term that represents the revenue minus the cost of goods sold and operating expenses, excluding taxes and interest.

Degree Of Operating Leverage

A measure, at a given level of sales, of how a percentage change in sales will affect profits. The degree of operating leverage is computed by dividing contribution margin by net operating income.