All of the Following Are True with Respect to the Plaintiff

question 60

Multiple Choice

All of the following are true with respect to the plaintiff in a suit under the 1933 Securities Act except the plaintiff:

• A) may be any person acquiring securities described in the registration statement, whether or not he or she is a client of the auditor.
• B) must establish that his or her loss resulted in whole or in part from causes other than the false or misleading statements.
• C) must base the claim on an alleged material false or misleading financial statement contained in the registration statement.
• D) does not have to prove reliance on the false or misleading statement or that the loss suffered was the proximate result of the statement if purchase was made before the issuance of an income statement covering a period of at least twelve months following the effective date of the registration statement.
• E) does not have to prove that the auditors were negligent or fraudulent in certifying the financial statements involved.

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Definitions:

Available Resources

Assets, both tangible and intangible, that are available to an individual or organization for use in the production of goods or provision of services.

Organizational Setting

The context or environment in which an organization operates, including its culture, structure, and external influences.

Pool Talents

The act of combining the skills, knowledge, and abilities of a group of people to achieve common objectives more effectively.

Team Diversity

The differences in values, personalities, experiences, demographics, and cultures among team members.