Brian, the Chief Executive Officer of Chairs & Tables, Inc

question 54

Multiple Choice

Brian, the chief executive officer of Chairs & Tables, Inc., intentionally understates the amount of the firm's debts in information provided to investors as part of an issue of stock. Darla buys the stock and suffers a loss. Brian may be subject to​

• A) ​government prosecution and a private investor's suit.
• B) ​negative publicity but no criminal prosecution or civil suit.
• C) ​only government prosecution.
• D) ​only the private investor's suit.

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Definitions:

Elite Theorists

Scholars who focus on the role and influence of small, powerful groups or individuals in society and politics.

High Status Groups

Social groups regarded as having superior prestige, authority, or wealth in a given society.

Power Concentration

The scenario in which a disproportionate amount of power or authority is held by a small number of individuals or organizations.

Elite Theory

Holds that small groups occupying the command posts of America’s most influential institutions make the important decisions that profoundly affect all members of society. Moreover, they do so without much regard for elections or public opinion.