User Account

All Pages

Legal recourse against any party

Assignment Help Business Management
Reference no: EM131983574

Pete, an accountant intentionally overstates the inventory on Sonny's financial statement in an effort to show that Sonny actually made a profit. Pete than certifies the  accounting statement that it complies with the General Accepted Accounting Principles (GAAP). Sonny had no knowledge that Pete intentionally overstated his inventory and believed the financial statement was a true representation of his business. Sonny takes the financial statement to the bank. In reliance on the statement, the bank loans Sonny $100,000. Six months later, Sonny goes bankrupt and is unable to pay the bank back. The Bank is interested in filing a lawsuit, select the correct statement.

  • The Bank is out of luck and has no legal recourse against any party.
  • The Bank has legal recourse against Pete based on strict liability.
  • The Bank has no legal recourse against Sonny for fraud since he did not know that Pete intentionally misrepresented his inventory amount.
  • The Bank has legal recourse against Pete based on fraud.
  • The Bank has legal recourse against Sonny based on bankruptcy law.

Reference no: EM131983574

Questions Cloud

Purpose of the first to record : Mark sells some land to Frank. Unaware of the recording system, Frank doesn't record his deed. A few days later, Mark sells the same piece of property to Rose
Examine audited financial statement to make recommendation : You are a student member of a business case competition. You are only allowed to examine one audited financial statement to make your recommendation.
Discuss the issues and maintenance requirements for firewall : Discuss firewalls to develop and have in a corporate environment. Discuss the issues and maintenance requirements for firewalls.
Find total flexible budget variable overhead cost variance : Determine the total flexible budget variable overhead cost variance and indicate the effect of the variance by selecting favorable (F) or unfavorable (U).
Legal recourse against any party : Six months later, Sonny goes bankrupt and is unable to pay the bank back. The Bank is interested in filing a lawsuit, select the correct statement.
How to update the fixed asset subsidary ledger : I am doing the accounting for the year 2017 but I am confused as to how to update the fixed asset subsidary ledger?
Prepare the journal entry to record the formation : Strong also contributed the Notes Payable for $110,000 (associated with Land), Required: Prepare the Journal entry to record the formation of this partnership.
Discuss the worst economic times : Discuss the worst economic times and the best economic times use economic terms.
How is innovation management related to technology : What does the discipline of Innovation Management involve? How is Innovation Management related to technology?

Reviews

Write a Review

Business Management Questions & Answers

  Caselet on michael porter’s value chain management

The assignment in management is a two part assignment dealing 1.Theory of function of management. 2. Operations and Controlling.

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. An analysis into the launch of Mountain Man Light over the present Mountain Man Lager.

  Analysis of the case using the doing ethics technique

Analysis of the case using the Doing Ethics Technique (DET). Analysis of the ethical issue(s) from the perspective of an ICT professional, using the ACS Code of  Conduct and properly relating clauses from the ACS Code of Conduct to the ethical issue.

  Affiliations and partnerships

Affiliations and partnerships are frequently used to reach a larger local audience? Which options stand to avail for the Hotel manager and what problems do these pose.

  Innovation-friendly regulations

What influence (if any) can organizations exercise to encourage ‘innovation-friendly' regulations?

  Effect of regional and corporate cultural issues

Present your findings as a group powerpoint with an audio file. In addition individually write up your own conclusions as to the effects of regional cultural issues on the corporate organisational culture of this multinational company as it conducts ..

  Structure of business plan

This assignment shows a structure of business plan. The task is to write a business plane about a Diet Shop.

  Identify the purposes of different types of organisations

Identify the purposes of different types of organisations.

  Entrepreneur case study for analysis

Entrepreneur Case Study for Analysis. Analyze Robin Wolaner's suitability to be an entrepreneur

  Forecasting and business analysis

This problem requires you to apply your cross-sectional analysis skills to a real cross-sectional data set with the goal of answering a specific research question.

  Educational instructional leadership

Prepare a major handout on the key principles of instructional leadership

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd