KSL ATP Legal Practice Management flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

SWOT Analysis

A strategic planning tool that identifies internal Strengths and Weaknesses and external Opportunities and Threats to inform business planning.

SMART Objectives

A framework for setting goals that are Specific, Measurable, Achievable, Relevant, and Time-bound, used in practice management.

Break-even point

The level of sales at which total revenue equals total costs, calculated as fixed costs divided by contribution per unit.

Sole proprietorship

A business owned by one person with no separate legal personality, exposing the owner to unlimited personal liability for debts.

Limited Liability Partnership (LLP)

A legal entity where partners have limited liability, separate from the partnership, and must register and file accounts.

Alternative Business Structure (ABS)

A licensed entity allowing non-lawyer ownership or external investment in a law firm, subject to regulatory approval.

Joint and several liability

A legal principle where each partner can be held fully liable for partnership debts, with rights to seek contribution from other partners.

Salaried partner

A partner who receives a fixed profit share but does not hold equity or share in the firm's capital or profits beyond that amount.

Shareholder agreement

A contract governing internal company matters such as share transfers, pre-emption rights, and deadlock resolution.

Client care letter

A document setting out the scope of work, fee basis, responsibilities, complaints procedure, and termination rights for a client.

Informed consent

Agreement given voluntarily by a competent client after full disclosure of material risks, benefits, and alternatives.

Engagement letter

A written contract between lawyer and client confirming the terms of engagement, including fees, billing, and scope.

Conflict of interest

A situation where a lawyer's duty to one client conflicts with duty to another client or with the lawyer's own interest.

Chinese wall

An information barrier within a firm to isolate confidential information and prevent conflicts, though not always sufficient to cure a conflict.

Former client conflict

A conflict arising when a lawyer acts against a former client in a substantially related matter without informed consent.

Client account

A bank account designated for holding client money, kept separate from the firm's own funds and subject to reconciliation.

Three-way reconciliation

A process ensuring client ledger balances, client bank account balance, and client cash book agree, required for client money compliance.

Office account

A bank account holding the firm's own money, such as earned fees and firm expenses, separate from client funds.

Matter opening checklist

A set of steps before starting work, including conflict check, engagement letter, client identification, and fee agreement.

Data minimization

A data protection principle requiring collection of only personal data that is adequate, relevant, and necessary for the purpose.

Retention schedule

A policy specifying how long different types of client files and records must be kept before destruction.

Working capital

A measure of a firm's short-term financial health, calculated as current assets minus current liabilities.

Cash flow forecast

A projection of expected cash inflows and outflows over a period, used to identify liquidity gaps and plan finances.

Lock-up days

A metric of cash conversion efficiency calculated as unbilled work plus debtors divided by daily revenue.

Disbursement

An expense paid by the law firm on behalf of a client, such as court fees or expert fees, typically billed at cost.

Unbilled work in progress (WIP)

The value of time and costs incurred on client matters that have not yet been billed; aged WIP indicates collection risk.

Contingency fee

A fee arrangement where the lawyer's fee is contingent on the outcome, often a percentage of recovered damages.

Performance appraisal

A formal review of an employee's work against objectives, providing feedback and identifying training and development needs.

Continuing Professional Development (CPD)

Ongoing learning and training required to maintain and enhance professional skills and knowledge throughout a lawyer's career.

Professional indemnity insurance (PII)

Insurance covering claims for negligence, errors, or omissions in professional services, including defense costs and damages.

Risk register

A document listing identified risks, their likelihood and impact, owners, mitigation actions, and review dates.

Marketing mix (4 Ps)

A framework of Product, Price, Place, and Promotion used to plan and execute marketing strategies for a law firm.