Bob,an Accountant,intentionally Misstates a Material Fact to Mislead Consolidated Industries,Inc

question 7

Multiple Choice

Bob,an accountant,intentionally misstates a material fact to mislead Consolidated Industries,Inc.,a client.Consolidated justifiably relies on the misstatement to its detriment.Bob is most likely liable for

• A)actual fraud.
• B)constructive fraud.
• C)destructive fraud.
• D)virtual fraud.

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Definitions:

Sequence Of Effects

A specific order in which related events, processes, or changes follow each other.

Hasty Generalization

A logical fallacy where a general conclusion is drawn from a sample that is too small or atypical.

Inductive

A reasoning method that entails moving from specific observations to broader generalizations and theories.

Deductive

A logical process where a conclusion follows necessarily from the set of premises, provided the premises are true.