Which of the Following Is True of Section 12 of the Securities

question 61

Multiple Choice

Which of the following is true of Section 12 of the Securities Act of 1933?

• A) It imposes liability on those who are negligent in not discovering the fraud.
• B) It imposes civil liability on persons who intentionally defraud investors by making misrepresentations of material facts in the registration statement.
• C) It imposes criminal liability on any person who willfully violates either the act or the rules and regulations.
• D) It imposes civil liability on any person who violates the provisions of Section 5 of the act.

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Definitions:

Information Flow

The movement or transfer of information from one place, person, or group to another, within any system that processes data.

Centralised Communication

Pertains to a communication structure where all decisions and messages flow through a central point or individual, typically found in hierarchical organizations.

Co-ordination Loss

The inefficiencies that arise in group tasks due to the poor integration of efforts, resources, or actions among team members.

Highly Centralised

Pertaining to a system or organization where decision-making is kept at a single central point, often leading to a concentration of power.