Barbara Works for Chevco but Owns No Chevco Stock

question 45

Multiple Choice

Barbara works for Chevco but owns no Chevco stock.She buys 10 shares of a new issue of company stock as a savings plan and afterward receives the signed registration statement, which contains an untrue statement of material fact.Because she works for Chevco, she recognizes the error.Can she sue the auditor?

• A)Yes, under Section 11, reliance is usually not required.
• B)Yes, if she can prove she would not have bought the stock otherwise.
• C)No, because she did not rely on the statement.
• D)No, because there is no privity between Barbara and the auditor.

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Definitions:

Sustainable Supply Chain Management

Addresses economic, environmental and social goals, while managing material, information and capital flows among companies along the supply chain.

Green Supply Chain Management

Utilises practices designed to reduce the environmental impact of the supply chain.

Inventory Management

The supervision of non-capitalized assets (inventory) and stock items, focusing on ordering, storing, and using the company's inventory.

Supply Chain

The entire network of entities, directly or indirectly interlinked and interdependent in serving the same consumer or customer.