Section 11 of the Securities Act of 1933,and Section 10

question 5

Short Answer

Section 11 of the Securities Act of 1933,and Section 10 of the Securities Exchange Act of 1934 make a CPA potentially liable to a purchaser of registered securities.For items a through f,place a checkmark (? )under the column if the plaintiff must prove its existence:
$$\begin{array} { | l | l | l | l | } \hline & \text { Plaintiff must provide } & \begin{array} { l } \text { Section } 11 \text { (1933 } \\\text { Securities Act) }\end{array} & \begin{array} { l } \text { Section } 10 \text { (1934 } \\\text { Securities Exchange } \\\text { Act) }\end{array} \\\hline \text { a. } & \text { Financial statements were } & & \\&\text { misleading. } & & \\\hline \text { b. } & \begin{array} { l } \text { CPA did not perform with } \\\text { due diligence. }\end{array} & & \\\hline \text { c. } & \begin{array} { l } \text { Plaintiff relied upon the } \\\text { financial statements. }\end{array} & & \\\hline \text { d. } & \text { CPA acted with scienter. } & & \\\hline \text { e. } & \text { Plaintiff suffered a loss. } & & \\\hline \text { f. } & \begin{array} { l } \text { Plaintiff was the primary } \\\text { beneficiary of the audit. }\end{array} & & \\\hline\end{array}$$

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Definitions:

Production Possibilities Frontier (PPF)

A curve showing alternative combinations of goods that can be produced when available resources are used efficiently; a boundary line between inefficient and unattainable combinations.

Output Combination

An output combination refers to the mixture of different goods and/or services produced by an economy or firm within a certain period, highlighting the diversity in production.

Human Capital

The collective skills, knowledge, or other intangible assets of individuals that can be used to create economic value for the individuals, their employers, or the community.

Labor Productivity

The measure of economic output per unit of input, typically calculated as total output divided by the number of hours worked.