Scienter Is Not a Requirement for an Accountant to Be

question 25

True/False

Scienter is not a requirement for an accountant to be civilly liable under Rule 10b-5.

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Definitions:

Quasi-Public Goods

Goods that are not fully non-excludable or non-rivalrous, falling between pure public goods and private goods, often provided by the government.

Negative Externalities

Unintended adverse effects of a transaction that impact third parties who are not part of the transaction.

Economic Efficiency

A situation in which all available resources are utilized in the most effective way possible, maximizing the production of goods and services without waste.

Taxes

Compulsory financial charges or some other type of levy imposed upon a taxpayer (an individual or legal entity) by a governmental organization in order to fund government spending and various public expenditures.