Where It Forces a Businessperson to Do Something That Harms

question 129

Multiple Choice

Where it forces a businessperson to do something that harms the business, even the threat of violence or some other illegal activity can constitute a tort. This tort is known as

• A) intimidation.
• B) deceit.
• C) injurious falsehood.
• D) conversion.
• E) malicious prosecution.

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Definitions:

Lawsuit Loss

Financial loss recognized by a company due to legal judgments or settlements in lawsuits.

Reasonably Possible Loss

A loss that is not assured but has a good chance of occurring, requiring disclosure in financial statements if quantifiable and material.

Losses Accrued

Expenses that have been incurred but not yet paid or recorded in the financial statements.

Probable Loss

An expected financial loss from contingent liabilities that can be reasonably estimated.