Law Society of Ontario (LSO) Paralegal Practice Exam

What are the main expenses covered by the general account of a paralegal?

1. Client refunds only

2. Office rent and salaries

3. Trust account management fees

4. Client entertainment expenses

The correct answer is: Office rent and salaries

The general account of a paralegal primarily covers operational expenses that are necessary for running the practice. These expenses typically include office rent and salaries, which are essential for maintaining a physical workspace and compensating staff. Office rent represents the cost incurred for securing a location where the paralegal can effectively meet with clients, work on cases, and conduct business activities. Salaries encompass the wages paid to paralegals, administrative staff, and other personnel whose work is crucial for the practice's day-to-day functions. Understanding that the general account is distinct from the trust account is important. The trust account is used for client funds, and its management has separate fees and regulations. While other choices pertain to specific activities or categories that may involve funds, they do not represent the broad, recurring business expenses that the general account is designed to cover.