The Securities Litigation Reform Act of 1995

question 293

Multiple Choice

The Securities Litigation Reform Act of 1995:

• A) makes companies strictly liable for misstatements
• B) makes it safer for firms to make careful predictions about profits and success
• C) imposes greater liability on companies that make predictions about future performance
• D) changes the liability standard in securities fraud cases to negligence
• E) does none of these things

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Definitions:

Management By Stress

A management strategy that deliberately imposes stress or high-pressure conditions on employees to increase productivity or efficiency, often at the cost of employee well-being.

Wage Flexibility

The ability of wages to adjust in response to changes in the economy, such as supply and demand for labor.

Incentive Plans

Reward systems designed to motivate employees by tying a portion of their earnings to their performance or achievement of targets.

Standardized Wages

A policy or practice aimed at ensuring employees performing similar tasks with similar experience levels are paid equally.