The Two Cases That Formed the Basis for Most Subsequent

question 31

Multiple Choice

The two cases that formed the basis for most subsequent decisions as to the determination of auditor negligence were:

• A) Hedley Byrne and AWA.
• B) JEB Fasteners and Twomax.
• C) Caparo Industries and Esanda.
• D) Kingston Cotton Mill and London and General Bank.

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Definitions:

Utility

A concept in economics that refers to the total satisfaction received from consuming a good or service.

X and Y

Often used in economic models to represent variables, products, or factors that can influence outcomes in analyses.

Consuming

The act of using up goods and services to satisfy wants or needs.

Maximizing Utility

The process of choosing the allocation of scarce resources that provides the highest possible satisfaction or happiness to an individual or society.