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.

---

Definitions:

Auto Insurance

A contract between a vehicle owner and an insurance company, providing financial protection against physical damage or bodily injury resulting from traffic collisions and against liability that could also arise from incidents in a vehicle.

Flat Fee

A fixed charge for a service, regardless of usage or time consumed.

Laspeyres Price Index

A price index calculated by taking the ratio of the total cost of purchasing a set of goods at current prices to the cost of purchasing the same set of goods at base period prices.

Consumptions

The act of using goods and services to satisfy wants and needs, including everything from essentials like food and clothing to luxury items.