For a Misrepresentation to Be Material,it Must Be Likely to Induce

question 72

True/False

For a misrepresentation to be material,it must be likely to induce a reasonable person to manifest assent or the maker must know that it would be likely to induce the recipient to do so.

---

Definitions:

Risky Asset

An asset that has a significant degree of uncertainty in its future returns, including the possibility of losing some or all of the original investment.

Market Price

The actual selling price of a product or service in the marketplace at any given time, determined by supply and demand.

Tuition Bonds

Financial instruments issued by educational institutions to fund their operations and expansion, typically repaid from tuition revenues.

Rate of Interest

The charge, as a percentage of the initial loan amount, incurred by a borrower for the utilization of funds or assets from a lender.