Which of the Following Is NOT an Element of a Successful

question 56

Multiple Choice

Which of the following is NOT an element of a successful negligence action against auditors?

• A)There must be proof that damage resulted.
• B)The plaintiff must be a known user of the financial statements.
• C)There must be a legal duty of care to the plaintiff.
• D)There must be a reasonable connection between the breach of duty of care and resulting losses.

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Definitions:

Long Run

A period of time in economics during which all factors of production and costs are variable, allowing for full adjustment to any change.

Output

The total amount of goods or services produced by a person, machine, factory, country, etc., within a given period.

ATC

Average Total Cost, the sum of all production costs divided by the quantity of output produced, reflecting the average cost per unit of output.

AVC

Average Variable Cost is the total variable cost per unit of output, which is calculated by dividing total variable costs by the quantity of output.