Which of the Following Would NOT Constitute Scienter

question 63

Multiple Choice

Which of the following would NOT constitute scienter?

• A) Negligent performance of a substandard audit.
• B) Being paid to conceal fraud.
• C) Reckless disregard for truth.
• D) Actual knowledge of fraud.

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Definitions:

Tacit Collusion

A situation where firms in a market understand each other's behaviors and outcomes without direct communication, leading to a form of non-competitive equilibrium.

Antitrust Laws

Legislation enacted to prevent new monopolies from forming and police those that already exist to protect consumers and ensure fair competition in the marketplace.

Predatory Pricing

A strategy where a company sets very low prices to eliminate competition and establish a monopoly in the market.

Tacit Collusion

An unspoken, implicit understanding among competitors to avoid certain competitive behaviors, such as price cutting.