Robertson and Enrickson prepared an agreement to enter into a partnership. Both of the partners realized that outside capital was needed for the firm to begin operations; however, they also realized that their individual and combined credit ratings
would not attract sufficient funds. In order to improve the new partnership's ability to attract investment capital, and with the approval of Enrickson, Robertson added his friend Thompson's name to the partnership agreement. Thompson, a well-known personality from a family of means, was not asked to be a partner and knew nothing of Robertson's and Enrickson's actions. Upon seeing Thompson's name on the partnership agreement, a local bank readily agreed to advance Robertson and Enrickson the total sum required to begin operations. The partnership has now failed, and the bank would like to hold Thompson, Robertson and Enrickson liable for the amount of the loan. Will the bank recover from Thompson, Robertson and Enrickson?
No. Thompson was not a partner. He did not participate in the preparation of the partnership agreement and was not even aware of the fact that his name was being used. In addition to their civil liability for the bank loan, Robertson and Enrickson might be subject to criminal charges for fraud.
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What is the overall term for the investigative technique that includes gathering evidence through data mining, audits, computer searches, net worth calculations, and financial statement analysis?
a. Documentary evidence b. Testimonial evidence c. Physical evidence d. Personal observation
Ratios can be used for different purposes. For example, a variety of ratios have been developed to assess a firm's liquidity. Similarly, ratios have been developed to assess solvency, profitability, and stock market strength. A sample of commonly used ratios for these purposes is provided in the table below.Required:In the middle column of the table, provide the formula to compute the specified ratio. In the final column, indicate the purpose (Liquidity, Solvency, Profitability, and Stock market strength) for which the ratio is most commonly used. The first item is completed as an example.
What will be an ideal response?
Recaptured depreciation is the portion of the sale price that is below the book value
Indicate whether the statement is true or false
Clark is the senior payroll clerk for Gonzalez Corporation. When preparing the weekly payroll, Clark added the name of Simmons, a fictitious employee, to the payroll list. Lewis, the treasurer of the corporation, signed the payroll checks and delivered them to Clark. Clark distributed checks to the correct employees and kept the one made payable to the order of Simmons. Clark indorsed the name of
Simmons to the check, cashed it at Diamond Check Cashing. In this situation:? A) an indorsement was not necessary to negotiate the instrument. B) the Gonzalez Corporation can seek recovery against Diamond Check Cashing. C) the forged signature is given the same effect as though it had been authorized by the named payee. D) Clark is not subject to civil or criminal liability.