Brock Brocklin, a stockbroker, invited Tom Thomson, a long-term client, to lunch to sell some stocks. Tom brought a friend, Clive Clernons. Brock mistakenly recommended Morden Plastics as being a good investment
The three martinis clouded his memory: the company name should have been Borden Plastics. Tom didn't buy Morden Plastics, but Clive did and lost heavily. Now Clive wants to sue Brock for negligence advice. Which of the following is true?
A) There is no right to sue for negligent use of words.
B) There was no contract between Brock and Clive so Clive has no legal basis to sue.
C) Clive will have to establish that he was in the scope of duty owed by Brock to win his action.
D) Clive will only have to prove that Brock was careless to win his action.
E) Clive should sue Tom for breach of fiduciary duty.
C
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A risk manager was considering the range of possible losses that her company might experience next year. She noted that major production facilities could only be destroyed once during the year, because the destruction of the production facility by one peril means that the facility could not be destroyed a second time. What is the situation called where the occurrence of one event precludes the occurrence of a second event?
(a) empty set events (b) dependent events (c) mutually exclusive events (d) independent events
When calculating the WACC it is common to include the estimated cost of accounts payable if a firm does not take the discount for early payment
Indicate whether the statement is true or false