Assume that $500,000 in damages are awarded to a plaintiff, and the CPA's percentage of responsibility established at 10%, while others are responsible for the other 90%. Assume the others have no financial resources. As a result the CPA has been
required to pay the entire $500,000. The auditor's liability is most likely based upon which approach to assessing liability?
A. Absolute liability.
B. Contributory negligence.
C. Joint and several liability.
D. Proportional liability.
C. Joint and several liability.
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Which of the following is a difference between vertical conflict and horizontal conflict?
a. Vertical conflict occurs between different levels in a marketing channel, while horizontal conflict occurs among channel members on the same level. b. Vertical conflict is found when manufacturers practice multiple distribution strategies, while horizontal conflict is found when manufacturers practice a single distribution strategy. c. Vertical conflict occurs when a wholesaler chooses to bypass a producer, while horizontal conflict occurs when a producer chooses to bypass a wholesaler. d. Vertical conflict is primarily characterized by lying and breaking contractual agreements, while horizontal conflict is primarily characterized by hiding and withholding information.
Taggart Transcontinental has issued at par a zero-coupon bond with a ten-year maturity. Investors believe there is a 10% chance that Taggart Transcontinental will default on these bonds. If they do default, investors expect to receive only 50 cents per dollar they are owed. If investors require an 8% return on their investment in these bonds, then the yield to maturity on these bonds will be
closest to (assume annual compounding): A) 6.0% B) 6.5% C) 7.0% D) 8.0%