Which of the Following Would NOT Constitute Scienter Contributing to Liability

question 47

Multiple Choice

Which of the following would NOT constitute scienter contributing to liability under Rule 10b-5?

• A) Negligent conduct
• B) Intentional conduct
• C) Reckless disregard for truth
• D) Knowing conduct

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Definitions:

Profit Maximization

The strategic method companies use to ascertain production levels and pricing that achieve maximum profitability.

Utility Function

A mathematical representation of how certain amounts of goods or services generate levels of satisfaction or utility for an individual or an entity.

Coconut Consumption

The act of using coconuts, either by eating or in the production of products such as oil, within an economic system.

Competitive Market

A market structure characterized by a large number of buyers and sellers, so no single participant has significant market power.