A Third Party Can Bring a Tort Action Against an Accountant

question 28

True/False

A third party can bring a tort action against an accountant for constructive fraud.

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Definitions:

Cross-hedging

An investment strategy used to manage risk by investing in assets indirectly related to the primary exposure.

Hedging

A risk management strategy used to limit or offset the probability of loss from fluctuations in the prices of commodities, currencies, or securities.

Closely Related

Closely Related describes items, individuals, or concepts that are closely connected in terms of characteristics, functions, or relationships.

Forward Contract

An agreement between two entities to purchase or sell a certain asset at a specified price and date in the future.