The Private Securities Reform Act of 1995 Made What Change

question 6

Multiple Choice

The Private Securities Reform Act of 1995 made what change affecting the liability of professionals in connection with securities?

• A) Changed the duty of care for accountants from a local standard to a uniform national standard.
• B) Made class action lawsuits by plaintiffs easier to file.
• C) Replaced the rule for liability of defendants from joint and several liability to proportionate liability.
• D) Made accountants liable for misstatements resulting from constructive fraud.

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Definitions:

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired; a response that is at first elicited by the second stimulus is eventually elicited by the first stimulus alone.

Habituation

The process by which an individual becomes accustomed to a stimulus through repeated exposure, leading to a decrease in response.

Operant Conditioning

A method of learning that employs rewards and punishments for behavior, encouraging the formation of new behaviors.

Bayley III Scales

A comprehensive developmental tool that assesses the cognitive, language, motor, social-emotional, and adaptive behavior skills of infants and young children.