Everett Is an Accountant Whose Clients Include Finance & Capital

question 28

Multiple Choice

Everett is an accountant whose clients include Finance & Capital, Inc. Under the Ultramares rule, if Everett is negligent in his work for Finance & Capital, he could be liable to Finance & Capital and​

• A) ​any third party.
• B) ​no third party with whom the accountant is not in privity or "near privity."
• C) ​third parties who are foreseen users of the work.
• D) ​third parties who are reasonably foreseeable users of the work.

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Definitions:

Linear Demand Curve

A graphical representation showing a straight-line relationship between the price of a good and the quantity demanded.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, indicating the sensitivity of demand to price changes.

Elastic

A description of a good's demand or supply that indicates a high sensitivity to changes in price, where a small change in price leads to a larger change in quantity demanded or supplied.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, with elasticity greater or less than one indicating the degree of responsiveness.