Author Question: Jake's Steaks has hired LONF, an audit firm, to conduct an audit for purposes of preparing an IPO ... (Read 171 times)

Redwolflake15 · **on:** Jun 24, 2018

Jake's Steaks has hired LONF, an audit firm, to conduct an audit for purposes of preparing an IPO for Jake's. The contract provides that the audit will be completed within 4 months. At the end of three months, LONF has not yet begun the audit and lets Jake's know that it cannot complete the audit within four months because Jake's staff have not provided access to the company's books and records. Which of the following statements is correct?
A) LONF has breached the audit contract.
B) A condition precedent to performance has not been satisfied.
C) Because there was no access clause in the contract, LONF must still perform on time.
D) The contract is void.

Question 2

Which of the following cannot be used to pierce the corporate veil?
A) Inadequate capitalization
B) Alter ego theory
C) Formation of the corporation to avoid personal liability
D) All of the above theories can be used.