An Exculpatory Clause Most Likely Would Be Held to Limit

question 47

Multiple Choice

An exculpatory clause most likely would be held to limit or disclaim liability for malpractice: ______.

• A) in an action based on fraud.
• B) in a suit brought by a third person.
• C) when the accountant can reasonably be expected to stand behind the information in question.
• D) when the clause is conspicuous, unambiguous, and clear.

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Definitions:

Interest Earnings

Income received from investments in interest-bearing financial instruments, such as savings accounts, CDs, or bonds.

Compounded Semi-Annually

Interest calculation method where interest is added to the principal sum twice a year, leading to interest earning interest over time.

Annual Scholarship

A financial award given to students on a yearly basis to support their education.

Investment

is the allocation of resources, usually money, with the expectation of generating an income or profit.