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:

Differentiation Value

The unique attributes and benefits that make a product or service stand out from competitors in the market.

Useful Life

The estimated period over which an asset is expected to be usable for its intended purpose, affecting depreciation calculations and capital budgeting.

Preventive Maintenance

The routine maintenance and care of equipment and facilities to prevent unplanned downtime and costly repairs by addressing potential issues before they become major problems.

Service Hours

A measure of activity based on the number of hours of service provided, often used in calculating billing or costs in service industries.