A Company Has a Pending Lawsuit That Has a Remote

question 110

Multiple Choice

A company has a pending lawsuit that has a remote possibility of being settled in favor of the plaintiff who is a former employee.What should the company do?

• A)Nothing.
• B)Make a disclosure in a financial statement footnote.
• C)Prepare a journal entry.
• D)Make a note to the financial statements and prepare a journal entry.

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Definitions:

Improve Relationships

The process of enhancing the interactions and communications between individuals, groups, or organizations to foster positive outcomes.

Sustain Value

The ability to maintain or increase the worth of a product, service, or brand over time, contributing to long-term success.

Personal Selling Process

Involves direct interaction between a salesperson and a potential customer with the aim of selling a product or service through persuasion and relationship building.

Preapproach

A sales strategy where research and planning are conducted before making initial contact with potential customers.