Scienter Is a Legal Term Which Means

question 10

Multiple Choice

Scienter is a legal term which means:

• A) that a buyer has justifiably relied upon the seller's representation.
• B) that the seller had knowledge that his statements were false and the statements were made with the intention to deceive.
• C) sales puffery.
• D) All of these.

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Definitions:

Total Equity

The total net value of a company, calculated by subtracting total liabilities from total assets, representing the owners' claim on company assets.

Profit Margin

A financial metric expressed as a percentage that measures the amount of net income earned with each dollar of sales by comparing the net income and the revenue.

Greatest Source of Funds

Typically refers to the primary means or largest contributor of operational or investment capital within an organization or economy.

Sale of Inventory

The process of selling the goods that a company manufactures or purchases to sell in the normal course of doing business.