Nadine and Lawrence Are Partners in a Real Estate Business

question 85

Multiple Choice

Nadine and Lawrence are partners in a real estate business. Nadine notices that several listings that were in their inventory are no longer in their inventory. When she asks Lawrence about these listings he indicated the by sellers had changed their mind. She is suspicious that Lawrence sold the properties and kept the commissions to the property. Lawrence refuses to let Nadine see the books. Nadine could ________

• A) ask for a profit analysis to be completed.
• B) demand an accounting.
• C) seek an indemnity agreement.
• D) ask a forensic auditor to audit the books.
• E) create her own set of books and keep them from Lawrence.

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Definitions:

Metamorphic Rock

Rock that has undergone transformation in texture, mineralogy, or chemical composition due to high temperature and pressure.

Partial Melting

The process by which only a portion of a solid is melted, often occurring in the Earth's mantle, leading to the generation of magma.

Metamorphism

The process by which the mineral composition and structure of rocks are changed by heat and pressure, without melting.

Magma

Molten rock located beneath the earth's surface, which can erupt as lava during a volcanic eruption and solidify to form igneous rocks.