A Litigation Hold Is a Requirement That Once a Case

question 5

True/False

A litigation hold is a requirement that once a case is filed or where the party knows or has reason to know that litigation may be brought,a duty exists to preserve evidence.

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Definitions:

Discount Rate

The interest rate used to determine the present value of future cash flows in discounted cash flow analysis. It reflects the opportunity cost of capital.

Present Value

The value at present of future cash receipts or a lump sum, taking into consideration a specified rate of return.

Future Value

The value of an asset or cash at a specified date in the future that is equivalent in value to a specified sum today, taking into account interest or return on investment.

Perpetuity

A type of annuity that continues indefinitely, providing consistent periodic payments.