Which of the following statements is true of projected earnings in a damages claim?
A) Calculating lost wages requires the projection of two separate earnings streams: past lost earnings and recoverable lost earnings.
B) Lost earnings constitutes the difference between pre-injury earnings and post-injury earnings.
C) Pre-injury earnings and post-injury earnings are the two subcomponents of lost earnings in a civil litigation claiming damages.
D) Post-injury earnings is what the plaintiff would have earned if not for the injury.
B
Explanation: B) Lost earnings constitutes the difference between pre-injury earnings and post-injury earnings.
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The ability to identify the key industry drivers of success is a fundamental concept that a nonfinancial manager should understand in order to:
A) better assess the current environment in which the firm operates. B) better assess future financing requirements. C) better understand the role of capital markets in raising long-term funds. D) better measure and create value for shareholders.
Describe the relationship between the general and subsidiary ledgers
What will be an ideal response?