Use the Fact Situation in Q6 to Answer the Related

question 55

Multiple Choice

Use the fact situation in Q6 to answer the related question that follows. In this situation Henry's telling Carol to get the financial statement from the bank constitutes

• A)a negligent misrepresentation.
• B)an innocent misrepresentation.
• C)negligence.
• D)a breach of the duty to act in good faith.
• E)none of the above

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Definitions:

Negative Impact

Adverse effects or harm resulting from a particular action or event.

Divestitures

The act of selling off or otherwise disposing of a business unit or asset, often for strategic, financial, or regulatory reasons.

Restructuring

The process of organizing a company, department, or team in a new way to reduce costs or improve efficiency.

Public Relations

The professional maintenance of a favorable public image by a company, organization, or famous person.