While Sitting Beside a Swimming Pool, a Neighbor, Bob, a Roof

question 302

Multiple Choice

While sitting beside a swimming pool, a neighbor, Bob, a roof installer, tells you that you should buy stock in HotNet because it is about to skyrocket in value. You invest all your money in the stock, which then drops to zero. You can successfully sue Bob for:

• A) negligent misrepresentation, but not for fraud
• B) deceit, but not for intentional misrepresentation
• C) negligent misrepresentation, but not for intentional misrepresentation
• D) fraud, but not for fraudulent misrepresentation
• E) none of the other choices

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Definitions:

Direct Labor-Hours

The total hours worked by employees directly involved in the manufacturing process or providing services.

Ending Cash Balance

The amount of cash a company has at the end of a given financial period, reflecting all cash inflows and outflows.

Budgeted Cash Receipts

Projected cash inflows for a future period, based on sales forecasts and other receipts.

Budgeted Cash Disbursements

An estimate of all cash payments that a business plans to make over a specific period, including operating expenses, purchase of assets, and other payouts.