Reference no: EM131801204
1. Max decides to invest in the stock of Millenium Television after he reads John's audit, which includes a statement, known by John to be false, as to the value of numerous worthless securities held as corporate assets. If Max sues John in a state using the broadest test for determining an accountant's liability for negligence to third parties, he will be entitled to:
a. have John complete a new audit.
b. damages if he is a reasonably foreseeable plaintiff.
c. nothing, since he is an incidental beneficiary of the audit contract.
d. rescission of his purchase contract.
2. Bigbox Corporation wishes to acquire all of the shares of Model Corporation. Approval would be required of:
a. Bigboxs' board of directors.
b. Model's board of directors.
c. Bigbox’s' shareholders.
d. Model's shareholders.
e. Both (b) and (d).
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Max decides to invest in the stock of millenium television
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