Which of the Following Is False Regarding the Private Securities

question 28

Multiple Choice

Which of the following is false regarding the Private Securities Litigation Reform Act?

• A) The act sets forth a specific set of actions and guidelines an accountant must follow after identifying a potentially illegal activity when conducting an audit.
• B) The act makes no reference to notifying the SEC of wrongdoing although it does reference notifying the applicable company's board of directors.
• C) The act states that accountants are liable for the portion of the damages for which they are responsible.
• D) In the event of a willful violation of the act, the SEC can seek an injunction against the accountant.
• E) Under the act, an accountant's silence when the accountant thinks he or she might have discovered fraud is enough to constitute aiding and abetting.

Differentiate between B2B, B2C, and C2C transactions.

Identify the core purpose of marketing and its strategic application through social media and advertising.

Understand the various financial rewards and incentives used in sales.

Recognize the importance and methods of sales training and development.

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Definitions:

NPV

Net Present Value, a calculation used to determine the value of an investment by discounting future cash flows to their present value.

Payback Analysis

A financial analysis method used to determine the time required to recoup the cost of an investment or project.

NPV

An evaluation method used to assess the profitability of an investment by calculating the difference between its current cash inflows and outflows, discounted to their present values.

IRR

Internal Rate of Return represents a financial measure for assessing the potential profitability of investments.