Why Was the Partnership Found to Be Liable in the Case

question 3

Multiple Choice

Why was the partnership found to be liable in the case of Polkinghorne v Holland [1934] HCA 28?

• A)The negligent advice was given within the normal course of the business of the partnership.
• B)The negligent advice was given outside the partnership's business.
• C)The negligent advice was not given within the normal course of the business of the partnership.
• D)The negligent advice was given by a partner in the partnership without a disclaimer.

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Definitions:

Separation Of Duties

A risk management strategy that divides responsibilities within an organization to reduce the risk of fraud or error.

Internal Control System

Procedures and methods to control a firm’s assets as well as monitor its operations.

Accounting Department

A division within a company or organization that is responsible for managing financial records, transactions, and reporting.

Periodic System

An inventory system that updates inventory and cost of goods sold at the end of each accounting period.