Obie Accuses Portia,a Broker with QT Investment Services,of Fraudulently Inducing

question 70

Multiple Choice

Obie accuses Portia,a broker with QT Investment Services,of fraudulently inducing him to invest in Riske Development Company,whose stock price declines in value. The reliance that gives rise to liability for fraud requires

• A)a subjective statement.
• B)misrepresentation of a fact knowing that it is false.
• C)puffery.
• D)seller's talk.

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Definitions:

Variable Costs

Costs that vary directly with the level of production, such as materials and labor.

Long Run

A period of time in economics during which all factors of production and costs are variable.

Apple Orchard

An agricultural area dedicated to the cultivation of apple trees for the purpose of producing apples.

Long-run Equilibrium

A state in which all factors of production and costs are variable, allowing firms to make adjustments leading to the establishment of a market balance.