Tom Was Hired to Prepare and Certify a Registration Statement

question 17

Multiple Choice

Tom was hired to prepare and certify a registration statement for Blue Scales,Inc.The Securities and Exchange Commission (SEC) found some omissions of material facts in the registration statement.Which of the following statements is true of this scenario?

• A) Tom cannot be held liable as the SEC is not a member of the limited class of intended users of his statements.
• B) Tom cannot be held liable as the SEC is not in privity of contract with him.
• C) Tom can be held liable under Section 11(a) of the Securities Act of 1933 regardless of his willfulness in making misstatements of facts.
• D) Tom can avoid liability if he can show that he had reasonable grounds to believe that the statements made were true.

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Definitions:

Busy Résumé

A resume that is densely packed with information, often detailing numerous jobs, skills, and achievements.

Many Fonts

The various styles and designs of text characters used in writing and printing to enhance visual appeal or convey particular moods.

Chronological Résumé

A type of resume layout that lists work history in reverse chronological order, starting with the most recent position.

Logical Preparation

The process of systematically organizing ideas or arguments in a coherent manner to achieve clarity and effectiveness in communication or problem-solving.