In the current situation, Nazim has an accounting background, and for his negligence, all this harm has made. the harm is related to the financial records before designating andy as the only supplier. It is needed in profit forecast figures. This harm occurs due to the lack of Financial agreement, which helps to create budget proposals. A partnership agreement decided to share the profit and losses of the business (Hertati et al, 2020). This financial harm is suffered by both for the misstatement given by Nazim. They have to project revenue and expenses before preparing a project.
Duty care is a legal obligation one person owes to another when something foreseeably causes harm. Yes, Nazim has owed a duty to care for Kim and Andy. It is the most important duty for Nazim to help his client as soon as possible due to the general rules of consultancy. financial conduct authority has published feedback statements on the duty of care to the clients. Kim is a close friend of Nazim and Andy is just a client of Nazim. Nazim can only advise his friend to understand finance in his business. He told Kim to ask Andy about his three years, of financial records to make a clear idea before investing (TOFAN, 2022). These documents help to understand the lender’s or investors’ insight into financial activities in business, which helps Andy to make credibility with the best interest rate. But Kim failed to provide his financial records designating Andy as the only supplier. The business decision was a total failure. Kim had a hard time as there were no new offers, so she had to cancel reservations (Maume, 2019). Nazim did not owe them, a duty of care for their professional relationship. Though Nazim missed the important document regarding business sales which is the outcome of the business failure. Financial forecasting on profit in marketing is very necessary to demonstrate a strong and positive return on marketing investment. Financial records help to give an idea to the investors or partners before investing money and make a transparent system to obtain the best prices for the suppliers. It is a kind of decision-making tool to make a future impact on the sustainability of the business (Richards, Ahmed, and Bruce, 2022).
Nazim is responsible for the breach of his duty to Andy. Though he lost his concentration and made such a mistake. There are breaches of fiduciary duty.
- Breach of the duty of care: It obligates corporate insiders to make informed decisions of importance to corporate matters by participating in the decision-making process.
- ● Breach of the duty of loyalty: It requires corporate insiders to the best interest of the company or the person (Friedlander, 2019).
Nazim is busy due to the financial closing of the year and made such a careless mistake, which Andy suffers and would not be able to recover. It is a breach of negligence in duty. Andy can take legal action to prevent his loss. Though it is an internal loss, Andy is also responsible for this, the government can investigate and a threat assessment can be done. It is a complex process to prove a breach of duty for Andy (Spaic et al, 2019).
TOFAN, M., 2022. FINANCIAL FRAUDULENT REPORTING USING EXPENDITURE FOR CONSULTANCY SERVICES. ROMANIAN LAW AND JURISPRUDENCE. EUFIRE 2022, p.382.
Hertati, L., Widiyanti, M., Desfitrina, D., Syafarudin, A. and Safkaur, O., 2020. The effects of economic crisis on business finance. International journal of economics and financial issues, 10(3), p.236.
Maume, P., 2019. Regulating robo-advisory. Tex. Int’l LJ, 55, p.49.
Richards, D.W., Ahmed, A.D. and Bruce, K., 2022. Ethics in financial planning: Analysis of ombudsman decisions using codes of ethics and fiduciary duty standards. Australian Journal of Management, 47(3), pp.401-422.
Friedlander, J.E., 2019. Confronting the Problem of Fraud on the Board. Bus. Law., 75, pp.1441-1472.
Spaic, A., Nolasco, C.A., Tsai, L.C.F., and Vaughn, M.S., 2019. Does insider trading pay? An analysis of trading and tipping activities in insider trading litigation. Journal of Financial Crime.
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