For an Action to Be Called Fraudulent, All of the Following

question 154

Multiple Choice

For an action to be called fraudulent, all of the following conditions are required except

• A) poor judgment
• B) false representation
• C) intent to deceive
• D) injury or loss

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Definitions:

Net Working Capital

The difference between a company's current assets and its current liabilities, indicating the short-term financial health of the company.

Capital Spending

Funds used by a company to acquire, upgrade, and maintain physical assets such as property, industrial buildings, or equipment.

Accounts Payable

The sum of money owed by a business to its vendors or lenders for products and services acquired on credit.

Top-Down Approach

An investment strategy that begins with analyzing macroeconomic factors before drilling down into the specifics of individual securities.