Mark Fails to Reveal a Material Fact in a Business

question 24

Multiple Choice

Mark fails to reveal a material fact in a business deal with Nancy. This constitutes fraud

• A)if Mark is unaware of the fact and the failure.
• B)if the amount of consideration received is grossly inadequate.
• C)if the fact concerns a serious defect known to Mark and unlikely to be known by Nancy.
• D)under any circumstances.

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Definitions:

Times Interest Earned

A financial metric assessing a company's capacity to fulfill its debt responsibilities using its present earnings.

Liabilities

Financial obligations or debts of a business entity that are owed to third parties.

Contingent Liability

A potential financial obligation that may occur in the future, depending on the outcome of a specific event.

Future Technologies

Emerging or anticipated technology advancements with the potential to significantly alter industries or societies.