Which of the Following Best Assists Auditors in Protecting Personal

question 29

Multiple Choice

Which of the following best assists auditors in protecting personal assets against damages from lawsuits?

• A)Restructuring to limited liability partnerships.
• B)Shredding documents prior to an investigation.
• C)Engaging in torts at the federal and state levels.
• D)The Securities Act of 1933.

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Definitions:

Nominal Consideration

A very small or token amount paid in a transaction to make it legally valid, even though the actual value of the transaction may be much larger.

Freedom of Contract

The freedom to enter into and enforce contracts without unnecessary interference by the state.

Adequacy

The state of being sufficient or appropriate in quantity, quality, or degree.

Stay Agreement

A legal document that temporarily suspends proceedings or actions as agreed upon by the involved parties.