Author Question: An accounting firm was sued for negligently preparing a financial report for a company. It causes ... (Read 39 times)

sabina · **on:** Jun 24, 2018

An accounting firm was sued for negligently preparing a financial report for a company. It causes losses to occur and the firm was found to have been negligent in its work. This meant that the firm would likely be:
a. not liable for damages since the problem was negligence, not intentional mistakes
b. responsible for losses not to exceed 1 million, the statutory limit on accountant liability in that state c. not responsible for damages despite negligence, since reliance could not be shown
d. not responsible for damages despite negligence because of a lack of proximate cause e. none of the other choices

Question 2

The power of eminent domain means:
a. the government must build housing for the poor b. the use of property is controlled by zoning
c. owners of other property make a legal claim against public land d. land is registered to its private owner
e. none of the other choices