Maxwell Is Not an Employee of the Edith Corporation,but He

question 27

Multiple Choice

Maxwell is not an employee of the Edith Corporation,but he was hired as a management consultant to provide unbiased advice about Edith Corporation's financial condition.Maxwell is a(n) _____.

• A)public accountant
• B)government accountant
• C)internal auditor
• D)management accountant

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Definitions:

Collateral

Property or assets pledged by a borrower to secure a loan, subject to seizure on default.

Third-Party Beneficiary

A person who is not a party to a contract but who has the right to enforce it because the parties to the contract made the contract with the intent to benefit him.

Implied

Something not explicitly stated but understood to be included or involved through indirect indications or logical inference.

Statute of Frauds

A legal concept that requires certain types of contracts to be in writing and signed by the party to be charged, in order to be enforceable.