Galen Prepares a Financial Statement for Hobby Inc

Galen prepares a financial statement for Hobby Inc. before a public offering of its stock. The Securities and Exchange Commission orders a revision of the statement. During the subsequent delay of the offering, the stock price drops. Hobby files a suit against Galen for negligence. Galen's best defense is

A) even if the accountant was negligent, this was not the proximate cause of the drop in the stock price.
B) the firm suffered no injury.
C) the accountant did not breach any duty of care that it owed to the firm.
D) the accountant owed no duty of care to the firm.

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free