Randi, an Accountant, Includes a False Statement in a Report

question 11

Multiple Choice

Randi, an accountant, includes a false statement in a report for Social Media Marketing, Inc., that is filed with the Securities and Exchange Commission. When Theo buys stock in Social Media and loses money on the investment, he files a suit against Randi, alleging fraud under the 1934 Securities Exchange Act. To avoid liability, Randi can show that she​

• A) ​intended to defraud Social Media, not Theo.
• B) ​intended to profit on stock trades generally, not only Theo's.
• C) ​is an otherwise competent accountant.
• D) ​had no knowledge that her statement was false.

Identify the concerns and protections available to minority shareholders, including claims of oppression and freeze-out tactics.

Comprehend the principles behind corporate constituency statutes and their implications for board duties and corporate profits.

Understand the concept and implications of raiders in corporate governance.

Recognize the importance of director rights, such as the right to inspect corporate books and records.

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Definitions:

Social Needs

Fundamental human requirements for belonging, love, and affection that motivate behavior and influence social interactions and relationships.

Esteem Needs

According to Maslow's hierarchy of needs, these are the fourth level of human needs, involving respect, self-esteem, and recognition from others.

Self-Actualization

The realization or fulfillment of one’s talents and potentialities, considered as a drive or need present in everyone.

Self-Actualization

The realization or fulfillment of one's talents and potentialities, especially considered as a drive or need present in everyone.