Steve Has Been Disgruntled with His Firm for Some Time

question 73

Multiple Choice

Steve has been disgruntled with his firm for some time and is secretly planning to leave and start his own manufacturer representative firm with the contacts he has made. Steve has been making copies of the firm's file-secured customer lists, supplier lists, pricing guides, and financial information which is routinely circulated to the staff.

• A) If Steve leaves and contacts the customers of his former firm, there is a good chance that he will be liable for damages caused by his taking this information.
• B) Steve shouldn't have made copies on the old firm's copy machine but taken the originals to an outside copy service.
• C) Steve's former firm will have a difficult time stopping Steve because it did not protect its information.
• D) Customers who switch to Steve's new firm will be liable to Steve's former firm for lost profits.

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Definitions:

Forensic Accounting

The practice of using accounting skills to investigate fraud or embezzlement and to analyze financial information for use in legal proceedings.

Managerial Accounting

The field of accounting focused on providing financial and nonfinancial information to help managers make decisions to fulfill the objectives of an organization.

Financial Accounting

The field of accounting focused on the preparation of financial statements for external users, such as investors and creditors.

Merchandising Businesses

Companies that purchase goods in a finished state and sell them without changing their form, typically involving retail and wholesale entities.