A Due Diligence Defense Cannot Be Asserted by an Accountant

question 15

True/False

A due diligence defense cannot be asserted by an accountant against the civil liabilities of Section 11(a) of the Securities Act of 1933.

---

Definitions:

Production Technology

Techniques, equipment, and software used in the production of goods and services.

Quantitative Relationship

A relationship that can be expressed as a mathematical equation, showing how changes in one variable affect another quantitatively.

Marginal Product

The additional output that is produced by using one more unit of a particular input while keeping other inputs constant.

Production Possibilities

A curve or frontier that shows the maximum combinations of goods or services that can be produced with a given set of resources and technology.