Final answer:
Pending or threatened litigation is an example of a contingent liability, a potential obligation that is dependent on future events.
Step-by-step explanation:
Pending or threatened litigation is an example of a contingent liability. This is a potential obligation that may arise from past events, and its existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the company.
This concept is particularly important in the context of financial accounting, where organizations must disclose contingent liabilities in their financial statements to provide a clear understanding of their potential obligations.
Interest groups may use litigation to influence public policy by bringing issues to the attention of the judicial branch. This strategic move can alter public policy through court decisions or the threat of legal action which sometimes lead organizations to change practices or policies preemptively.
This concept ties into financial accounting and can be a strategic tool for interest groups to influence public policy via the judicial system.