Which of the Following Is an Example of a Direct

question 68

Multiple Choice

Which of the following is an example of a direct effect illegal act that could be performed by a client? Violation of

• A)environmental protection laws for the production facility.
• B)insider securities trading regulations by senior management.
• C)employment equity laws for a large group of non-unionized employees.
• D)income tax laws and incorrect calculation of income taxes payable.

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Definitions:

Payee

The person or entity to whom a payment is to be made or credited.

Parts Warehouse

A storage facility specialized in storing spare parts for various types of machinery or vehicles.

Without Recourse

A legal term indicating that the holder of a financial instrument cannot demand payment from the original issuer in the case of default.