Question

Jim tells his independent accountant, Rachelle, to prepare a financial statement for his business associate, Mel. If Rachelle is negligent in her preparation of this financial statement,:

A. she will be liable if Mel suffers actual financial loss due to her negligence.

B. Jim will be liable if Mel suffers actual financial loss due to Rachelle's negligence.

C. she will still not be liable to Mel.

D. Mel will not recover any money for financial loss due to her negligence because the business associate is not an actually named third party.

Answer

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