Test Bank For Fundamentals of Law Office Management, 5th Edition

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171
TEST BANK
CHAPTER 1
THE LEGAL MARKETPLACE
MULTIPLE CHOICE
1. The size of a law firm is measured by
a. its total income
b. the number of clients
c. the number of attorneys it employs
d. the number of its branch offices
e. b and c only
2. A mega-firm
a. specializes in mergers
b. has more than 25 partners
c. is located in one region of the United States
d. employs more than 1,000 attorneys
e. all of the above
3. A law firm’s culture consists of
a. social atmosphere
b. recognition
c. family attitudes
d. all of the above
e. none of the above
4. A firm with a decentralized form of management is
a. managed from one source
b. managed in segments
c. democratic in nature
d. autocratic in nature
e. a and d only
5. A general practitioner
a. does not specialize
b. employs no other attorneys
c. practices criminal law only
d. all of the above
e. none of the above

172 Test Bank
6. What has influenced whether an attorney is a sole practitioner or in group practice?
a. the economy
b. changes in the law
c. cost of technology
d. all of the above
e. none of the above
7. A partnership
a. consists of two or more attorneys
b. always consists of a major partner and a minor partner
c. may consist of three classes of attorneys
d. none of the above
e. a and c only
8. A general practitioner
a. specializes in one area of law
b. practices in all areas of the law
c. is the same as a sole practitioner
d. all of the above
e. none of the above
9. In a professional corporation
a. all attorneys are considered employees
b. owners receive dividends
c. a shareholder may be an officer and a director
d. all of the above
e. none of the above
10. Legal clinics
a. provide low-income people with low-cost legal services
b. have luxurious offices
c. do not employ paralegals
d. are considered boutiques
e. none of the above
11. A boutique firm
a. works in many areas of the law
b. handles only criminal matters
c. handles only tax matters
d. all of the above
e. none of the above

Chapter 1: The Legal Marketplace 173
12. A corporate legal department has
a. an autocratic form of management
b. a democratic form of management
c. a committee form of management
d. a combination form of management
e. none of the above
13. A freelance paralegal service
a. offers services to attorneys on an independent contractor basis
b. most often specializes in one area of law
c. has a decentralized form of management
d. all of the above
e. a and b only
14. The federal government
a. employs legal technicians and paralegal specialists
b. does not employ paralegals
c. gives paralegals less autonomy than private law firms
d. will not allow specialization
e. all of the above
15. Globalization is
a. law firms that establish offices in other countries to service international clients
b. a form of doing business in a poor economy
c. a law firm that offers nonlegal services in other countries
d. a result of outsourcing
e. none of the above
TRUE/FALSE
16. The structure and organization of a law office is determined by the government.
17. An international firm has branch offices in other countries.
18. A democratic type of management is an effective management style.
19. Management committees make swift decisions.
20. New attorneys are generally general practitioners.
21. Contract attorneys work directly for the public.
22. P.C. stands for “professional corporation.”

174 Test Bank
23. One disadvantage to a partnership is that all partners are liable for the malpractice of other
partners.
24. All shareholders in a professional legal corporation must be attorneys in most states.
25. In an office-sharing arrangement, an attorney may do work for the law firm in lieu of paying
rent.
26. A corporate legal department functions around the projects of the corporation.
27. Attracting clients is not a concern for a corporate legal department.
28. A freelance paralegal service works only for attorneys.
29. In most states, for an attorney to be designated a certified specialist, the attorney must take a
specialist exam.
30. A legal administrator manages a law firm.
COMPLETION
31. The structure and organization of a law office is determined by what four things?
___________________, ___________________, ___________________, and
___________________.
32. Most attorneys prefer to work in ____________________ law firms.
33. The four types of large law firms are ____________________, ____________________,
____________________, and ____________________.
34. A firm’s area of ____________________ determines its clientele and need for staff.
35. The ____________________ management style is most commonly found in law firms.
36. The two forms of management are ____________________ and ____________________.
37. The federal government classifies workers in the ____________________.
38. Ownership of a professional corporation is determined by ____________________.
39. The two types of office-sharing associations are the ____________________ concept and the
____________________ concept.

Chapter 1: The Legal Marketplace 175
40. What type of law firm employs 1,000 or more attorneys? ____________________.
41. The head of a corporate legal department is called a(n) ____________________.
42. Most paralegal employers are ____________________.
43. The four types of business structures for private law firms are ____________________.
44. An LLC is a(n) ____________________.
45. The General Schedule is
_____________________________________________________________.
MATCHING
_____ 46. Outside counsel A. Corporate legal department
_____ 47. Boutique B. Professional Corporation
_____ 48. Executive committee C. Private law firms
_____ 49. In-house counsel D. A firm that specializes in one area of law
_____ 50. P.C. E. Committee management style

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176
TEST BANK
CHAPTER 2
THE LEGAL TEAM
MULTIPLE CHOICE
1. A law firm’s need for staff varies according to its size and
a. the number of attorneys in the firm
b. geographical area of the firm
c. economic forecasts
d. governmental statistics
e. specialty
2. A legal administrator
a. receives the compensation and status on par with an attorney
b. handles all of the clerical work for a firm
c. is responsible for the accounting functions in a firm
d. never attends partner meetings
e. none of the above
3. A rainmaker
a. is a sole proprietor
b. is an equity partner
c. has a lower annual billable hours requirement
d. brings in new clients
e. all of the above
4. The major difference(s) between a legal administrator and office manager is (are)
a. an administrator has authority to make major financial decisions for the firm
b. an administrator has the right to vote at partnership meetings
c. an office manager has authority to hire and fire staff
d. all of the above
e. a and b only
5. A tiered paralegal program
a. refers to paralegal continuing legal education
b. provides upward mobility for paralegals in a law firm
c. is based on experience
d. all of the above
e. b and c only

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Chapter 2: The Legal Team 177
6. What (is/are) the difference(s) between a law clerk and a paralegal?
a. a law clerk does legal research and a paralegal does not
b. a paralegal drafts legal documents and a law clerk does not
c. a law clerk is educated in legal procedures and a paralegal is not
d. all of the above
e. none of the above
7. A paralegal assistant
a. is usually a paralegal student
b. prepares lengthy documents
c. is responsible for training paralegals
d. all of the above
e. none of the above
8. A legislative analyst
a. is responsible for the firm’s computer system
b. runs errands for the firm
c. is found in governmental offices only
d. is responsible for tracking legislation for clients
e. none of the above
9. A case coordinator
a. is responsible for filing documents
b. develops management strategy for a complex litigation case
c. numbers and indexes documents
d. all of the above
e. b and c only
10. A clerk
a. runs errands for the firm
b. handles administrative assignments under the direction of a supervisor
c. prepares trial exhibits
d. all of the above
e. b and c only
11. Outsourcing is
a. referring cases to another law firm
b. sending employees to an educational institution for training
c. using outside companies for support staff functions
d. none of the above
e. hiring a new attorney from outside the firm

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178 Test Bank
12. An employment agency
a. specializes in attorneys only
b. specializes in paralegals only
c. provides the firm with new cases
d. provides the firm with temporary employees
e. none of the above
13. An outside computerized litigation support service
a. requires the firm to hire additional staff
b. helps the firm with complex litigation cases
c. hires paralegals only
d. provides the firm with new computers and software
e. none of the above
14. Consultants are
a. employed by law firms
b. used on an “as needed” basis
c. used as expert witnesses
d. all of the above
e. b and c only
15. A bonding company
a. searches records of the Secretary of State’s office
b. registers companies in the appropriate state agency
c. searches out-of-state records
d. all of the above
e. none of the above
TRUE/FALSE
16. A law firm’s need for staff varies according to the size of a firm.
17. Most “of-counsel” positions are equity positions.
18. Attorneys, legal administrators, and paralegal managers define a paralegal’s role in a law
office.
19. There is no definition of a paralegal that is accepted by all members of the legal community.
20. Most paralegals have a paralegal certificate.
21. Specialization can increase a paralegal’s salary.

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Chapter 2: The Legal Team 179
22. A legislative analyst tracks legislation that affects clients.
23. An investigator may be employed by a law firm.
24. A process server runs errands for the law firm.
25. A file clerk’s time is spent filing documents.
26. A messenger is also called a courier.
27. Larger firms report greater use of outsourcing services.
28. Only small firms use an outside paralegal service.
29. Most legal administrators have an MBA degree.
30. Leverage is the ability to make money from the work of others.
COMPLETION
31. The four categories of attorneys are ____________________, ____________________,
____________________, and ____________________.
32. A legal administrator is under the direction of ____________________.
33. Most paralegals specialize in ____________________.
34. The role of a legal secretary is changing into that of a(n) ____________________.
35. The two factors that determine a receptionist’s duties are ____________________ and
____________________ of a law firm.
36. A ____________________ law firm uses more specialized personnel.
37. A photocopy clerk is found in ____________________ law firms.
38. A recruiter’s duty is to ____________________.
39. Most law firms use an attorney service instead of employing their own
____________________.

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180 Test Bank
40. A computerized litigation support service is used in ____________________ cases.
41. A ____________________ firm reports greater use of outsourced service.
42. Name four paralegal supervisors: ____________________, ____________________,
____________________, and ____________________.
43. Name five or six consultants used by law firms. ____________________,
___________________, ____________________, ____________________,
____________________, ____________________.
44. A firm’s ____________________ determine its need for consultants.
45. Most large and midsize firms use a ____________________ consultant.
MATCHING
_____ 46. CPA A. A person who testifies according to professional expertise
_____ 47. MBA B. Degree of an accountant
_____ 48. Of-counsel C. A person responsible for bringing in clients to the law firm
_____ 49. Rainmaker D. Degree of a legal administrator
_____ 50. Expert witness E. A part-time attorney

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181
TEST BANK
CHAPTER 3
PERSONNEL RELATIONS
MULTIPLE CHOICE
1. What two characteristics measure a manager’s performance?
a. efficiency and effectiveness
b. organizing and staffing
c. planning and leading
d. competency and commitment
e. creativity and cooperation
2. Which of the following is/are a law firm’s objective(s)?
a. provide quality legal services to the client
b. provide growth and profit for the firm
c. provide growth and satisfaction for the employees
d. all of the above
e. none of the above
3. Some advantages of hiring within a firm include
a. the cost of hiring a new employee is eliminated
b. the loss in productivity is reduced
c. encouraging company loyalty
d. increases employee morale
e. all of the above
4. Which of the following functions of human resource management is the most important?
a. planning
b. controlling
c. organizing
d. leading
e. staffing
5. Studies have shown that an attorney with a new paralegal is operating at _______
inefficiency.
a. 15 percent
b. 20 percent
c. 25 percent
d. 30 percent
e. 65 percent

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182 Test Bank
6. A position description contains
a. title, duties, and responsibilities for the position
b. the age requirements for the position
c. the cost of hiring a new employee
d. none of the above
e. all of the above
7. The ouch formula refers to
a. guidelines for firing an employee
b. guidelines for hiring an employee
c. guidelines for giving constructive criticism to an employee
d. proper interview questions
e. none of the above
8. Effective communication involves
a. body language
b. tone of voice
c. listening
d. speaking
e. all of the above
9. After a person is hired, how long does it take for an employee to be productive, in general?
a. two weeks
b. one month
c. two months
d. three months
e. none of the above
10. The purpose of a formal performance interview is to
a. give constructive feedback
b. set goals for the coming year
c. discuss family values
d. a and b only
e. all of the above
11. Basic salary structure is based on what four things?
a. the marketplace, job analysis, job description, and evaluation
b. experience, competence, evaluation, and communication
c. commitment, competency, creativity, and cooperation
d. education, experience, age, and skills
e. the marketplace, education, experience, and competency

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Chapter 3: Personnel Relations 183
12. Raises and bonuses are based on
a. merit
b. consumer price index
c. tenure
d. longevity with the firm
e. all of the above
13. Bonuses
a. are used to offset a low salary
b. are given in large firms more than small firms
c. are necessary to keep employees satisfied
d. do not exist in government offices
e. none of the above
14. Constructive feedback
a. is closely related to good communication skills
b. motivates people to reach personal goals
c. includes praise and recognition for a job well done
d. is not given for fear of damaging a person’s morale
e. all of the above
15. How is a sense of loyalty to a firm developed?
a. trust in the motives of the organization
b. guaranteed increase in salary
c. no requirement to work overtime
d. a and b only
e. all of the above
TRUE/FALSE
16. The best way to fill a position is to advertise in the newspaper.
17. The controlling function includes the ability to motivate employees to reach their maximum
potential.
18. The reduced cost of hiring a new employee is eliminated when a firm promotes from within
the firm.
19. A hiring specification identifies the education and skills necessary for a position.
20. Mentoring is when an experienced employee trains a new employee.

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184 Test Bank
21. The reason an applicant left prior employment is a consideration when hiring an employee.
22. A common complaint paralegals have with law firm management is the lack of formal
evaluation procedures.
23. Opportunities for paralegals are predicted to increase according to government statistics.
24. When establishing a compensation plan, firms refer to a position description that describes
the job.
25. Studies have shown that merit raises do not increase productivity.
26. Law firms with a good benefits package have a higher degree of employee loyalty.
27. Most paralegals feel that exempt status is less important than overtime pay.
28. A paralegal must not allow unethical behavior to pass unnoticed.
29. Constructive feedback is essential to good job performance.
30. Exempt employees are paid for overtime.
COMPLETION
31. What is LinkedIn?
32. What are soft skills?
33. What are the three internal conditions that affect management policies?
____________________, ____________________, and ____________________.
34. The most important part of an employment interview is ________________.
35. How are nonexempt employees paid?
36. The most common disadvantage of promoting from within the firm is
____________________.
37. In matters concerning employment, which law will prevail: federal or state?
____________________.

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Chapter 3: Personnel Relations 185
38. CEMEC is an acronym that stands for what five employee expectations?
___________________, ___________________, ___________________,
___________________, and ___________________.
39. What two things do poor working conditions produce? __________ and ____________.
40. The two types of evaluation are ____________________ and ____________________.
41. Good working conditions decrease ____________________ and increase
____________________.
42. ____________________ firms tend to offer fewer benefits.
43. Which law sets the perimeters of exempt and nonexempt employees?
____________________.
44. What are the five Cs of the team approach? ____________________,
____________________, ____________________, ____________________, and
____________________.
45. Personality conflicts are a source of ____________________ and ____________________
malfunction.
MATCHING
_____ 46. Attrition A. Occurs often; daily
_____ 47. Soft skills B. Not paid for overtime
_____ 48. Exempt C. Ability to handle stressful situations
_____ 49. Consumer price index D. Used to calculate a raise
_____ 50. Informal evaluation E. Caused by death or retirement

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