Which of the Following Is a Necessity to Bring a Private

question 88

Multiple Choice

Which of the following is a necessity to bring a private civil action against a violator of the Racketeer Influenced and Corrupt Organizations Act (RICO) based on securities fraud?

• A) The accountant must not be a third-party independent contractor.
• B) The defendant must have been criminally convicted in connection with the securities fraud.
• C) The plaintiff should file the case before the government brings a lawsuit.
• D) The lawsuit must be based on the Tax Reform Act.

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Definitions:

Capital Lease

A lease agreement that is treated like an asset purchase for accounting purposes, where the lessee obtains the benefits and risks of ownership.

Bargain Purchase Option

An option in a lease agreement that allows the lessee to purchase the leased item at a price significantly lower than its expected fair market value.

Economic Life

The expected period of time during which an asset is useful to the average owner, or until the asset can no longer be economically used.

Lease Term

The fixed, non-cancelable duration of a lease agreement, often including options to renew for additional periods.