In Hodgkinson V

question 24

Multiple Choice

In Hodgkinson v. Simms, an accountant advised a client to invest in a real estate development while also acting for the developers. What did the Supreme Court of Canada find?

• A) The presence of a financial risk was the identifying feature of a fiduciary relationship and, in this case, imposed the fiduciary duty.
• B) The presence of a financial risk was the identifying feature of a fiduciary relationship but, in this case, did not impose a fiduciary duty.
• C) The presence of loyalty, trust, and confidence were identifying features of a fiduciary relationship and, in this case, imposed the fiduciary duty.
• D) A fiduciary relationship could not arise in circumstances where an investor acted of his own accord.
• E) A fiduciary relationship could not arise in commercial circumstances, such as those found in this case.

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Definitions:

Reliability

In psychological testing, the consistency or stability of test scores from one testing to another.

Validity

In psychological testing, the degree to which a test measures what it is supposed to measure.

Interest Inventory

A self-assessment tool that helps individuals identify their interests as part of career planning or personal development.

Forced-choice Format

A method of questioning that offers fixed choices between two or more alternatives.