Rick Prepared Financial Statements for MegaCorp Knowing That It Was

question 10

Multiple Choice

Rick prepared financial statements for MegaCorp knowing that it was going to use his statements to apply for a loan with Big Bank.When Big Bank turned MegaCorp down,it applied to Fourth Bank for a loan.MegaCorp presented the statements prepared by Rick to Fourth Bank,which gave the company a loan.It was discovered that Rick was negligent in preparing the statements,and Fourth Bank sued Rick.Under which of the following tests is Rick liable?

• A)Ultramares doctrine
• B)Foreseeable doctrine
• C)Restatement doctrine
• D)Both the foreseeable doctrine and the Restatement doctrine

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Definitions:

ADHD

Attention Deficit Hyperactivity Disorder, a neurodevelopmental disorder characterized by difficulty in paying attention, excessive activity, and impulsivity.

Ritalin

A stimulant medication commonly prescribed to treat Attention Deficit Hyperactivity Disorder (ADHD) and certain sleep disorders, known for its ability to increase attention and control behavior.

Suicide Rates

The proportion of individuals in a population who take their own lives, often measured per 100,000 people per year.

Unemployment

A lack of job opportunities for individuals who are actively searching for work.