Which of the Following Is a Major Characteristic of a Pre-Settlement

question 98

Multiple Choice

Which of the following is a major characteristic of a pre-settlement settlement?

• A) The settlement results in a firm,legally binding written agreement between the parties.
• B) It occurs in advance of the parties undertaking a full-scale negotiation.
• C) The parties intend that the agreement will be replaced by a more clearly delineated long-term agreement which is to be negotiated.
• D) It resolves only a subset of the issues on which the parties disagree,and may simply establish a framework within which the more comprehensive agreement can be defined and delineated.
• E) All of the above are characteristics of a pre-settlement settlement.

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Definitions:

Favorable Variances

Differences between actual and budgeted amounts that result in more profit or less cost than originally planned.

Income

Money received, especially on a regular basis, for work, through investments, or from business activities.

Management Of Variance Analysis

The process of investigating the differences between actual financial results and budgeted or expected results, with the aim of understanding the reasons behind these variances to manage and improve financial performance.

Flexible Budget Amounts

Budgeted figures that can adjust based on changes in activity levels or other factors, unlike a static budget.