A Fraud Hypothesis

question 37

Multiple Choice

A fraud hypothesis:

• A) Can never be changed unless a new engagement letter is published.
• B) Should be changed after conviction to match the crime involved.
• C) Is simply a hypothesis and can be changed, or modified as more facts are discovered.
• D) Is a standard of defense and should be proven wrong before the case is finalized.

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Definitions:

Officers

Individuals appointed by a company's board of directors who are responsible for the day-to-day operations of the company.

Distributorship

A type of franchise in which the franchisor manufactures a product and licenses a dealer to sell the product in an exclusive territory.

Franchise

A business arrangement between an owner of a trade name or trademark and a person who sells goods or services under the trade name or trademark.

Limited Partnership

A partnership consisting of at least one general partner, who manages the business and is liable for its debts, and one or more limited partners, who contribute capital and share in profits but have limited liability.