A Defense to an Action Based on Material Omissions and Untrue

question 91

Multiple Choice

A defense to an action based on material omissions and untrue statements contained in a registration statement is:

• A) innocent mistake.
• B) due diligence.
• C) constructive disclosure.
• D) reasonable diligence.

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Definitions:

Centralized

Refers to the system or organization where decision-making authority is concentrated at a high or singular point, often to maintain control and uniformity.

Direct Supervision

The management approach where a supervisor is directly involved in overseeing and guiding the work of subordinates, often with immediate feedback and control.

Larger Firms

Businesses or companies with a significant number of employees, extensive operations, and high revenue.

Organic Structures

Organizational frameworks characterized by flexibility, decentralized decision-making, and a lack of strict hierarchies or rules.