Sun Corp. approved a merger plan with Cord Corp. Factors in approving the merger were the tax returns of Cord prepared by Frank & Co., CPAs. Sun had required Cord to disclose its tax returns and audited financial statements as a condition of the merger. Frank knew of this condition before it prepared returns that contained irregularities that later caused Sun to suffer substantial losses. For Frank to be liable for common law negligence, Sun, at a minimum, must prove that Frank
A. Knew of the irregularities.
B. Failed to exercise due care.
C. Was grossly negligent.
D. Acted with scienter.
Answer: B. Failed to exercise due care.
Business
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Which of the following situations involves a loss that would typically NOT be excluded under a health insurance policy?
A) The insured is injured in combat while serving in the military. B) The insured is injured with a self-inflicted injury. C) The insured is injured while vacationing in a state that is not her state of residence. D) The insured intentionally injures himself while committing a felony.
Business
When at a luncheon or meeting, your cell phone should be
a. Set to vibrate b. Turned off c. A or B d. None of the above
Business