One Element of Fraud or Intentional Misrepresentation Is Scienter

question 233

Multiple Choice

One element of fraud or intentional misrepresentation is scienter. That means:

• A) false information about an important fact was passed on
• B) the defendant wanted the plaintiff to believe the falsehood
• C) there was a relationship between the parties that created a legal obligation
• D) the extent of damages caused
• E) none of the other choices

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Definitions:

Incremental Net Income

The increase in net income resulting from a particular business decision compared to the scenario where the decision is not made.

Income Tax Expense

The amount of money a company or individual owes in taxes based on the taxable income for a given period, typically one year.

Profitability Index

A calculation used to determine the relative profitability of a project by dividing the present value of future cash flows by the initial investment.

Working Capital

Working capital is the difference between a company's current assets and current liabilities, indicating the liquidity and operational efficiency of the business.