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Halbeck,LLC was negligent in its audit of E-treme,Inc.Unbeknownst to Halbeck,E-treme used the financial statements to secure a loan from Great State Bank.Under the Ultramares doctrine,Halbeck will be liable to Great State Bank for its losses on the loan.
Expert Power
The influence a person has over others due to their recognized expertise, skills, or knowledge in a specific area.
Coercive Power
The capacity to control others through the fear of punishment or the loss of valued outcomes.
Legitimate Power
Legitimate Power is authority that is officially sanctioned or accepted due to a person’s position or role within an organization or system.
Referent Power
A form of influence where a person elicits compliance or admiration from others based on charisma or personal traits rather than formal authority.
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