In the Business World, the Goal of Preventive Law Is

question 14

Multiple Choice

In the business world, the goal of preventive law is to increase profits by:

• A) imposing higher inheritance and income taxes on wealthy people.
• B) avoiding losses through fines and damage judgments.
• C) involving the client in the business-planning process.
• D) creating unenforceable contracts.

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Definitions:

Net Income

Net Income is the total profit of a company after all expenses, including taxes and operating costs, have been deducted from revenues.

Accounts Payable

Money owed by a company to its creditors for goods and services that have been received but not yet paid for.

Drawings

The funds withdrawn by the owner of a sole proprietorship or partnership from the business for personal use.

Beginning Capital

The amount of capital at the start of a period before any transactions have occurred within the period.