Question

11) Lauren wants to open a floral shop in a downtown business district. She doesn't have funds enough to purchase inventory and pay six months' rent up front. Lauren approaches a good friend, Jamie, to discuss the possibility of Jamie investing funds and becoming a 25% partner in the business. After a lengthy discussion, Jamie agrees to invest. Eight months later, Jamie discovered that Lauren has not be honest with her regarding some aspects of the business financial operation. In order for Jamie to sue Lauren for fraud, all the following must be true exceptJamie found Lauren dishonest because she does not always reconcile the business cash account on a timely basis.Jamie found Lauren honest because she does not always reconcile the business cash account on a timely basis.

Answer 1

Answer:

Jamie found Lauren dishonest because she does not always reconcile the business cash account on a timely basis.

Explanation:

If this statement is true concerning Laurel "Jamie found Lauren dishonest because she does not always reconcile the business cash account on a timely basis" then Jamie can go ahead and sue Laurel for fraud because it simply means Laurel is into a fraudulent act since the cash account is not been reconcile on a daily basis which makes it hard for Jamie to quickly detect what was going wrong in the business since the business is a partnership business between both of them eventhough Laurel has the large part of the business because Jamie only invested 25% she can go ahead and sue her for fraud if the statement was true and accurate with what was going on in the business.