Answered: Liability for negligence in the…

Liability for negligence in the performance of corporate duties may extend to a. officers only. b. none of the choices. c. directors and officers. d. directors only.

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter4: Professional Legal Liability

Section: Chapter Questions

Problem 15RQSC

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Concept explainers

Contingent Liabilities and Provisions

A contingent liability can be defined as a liability the occurrence of which is dependent upon the happening of an uncertain future event. It is generally recorded in the books only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly.

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Liability for negligence in the performance of corporate duties may extend to

officers only.

none of the choices.

directors and officers.

directors only.

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