To Prove His/her Due Diligence Defense Under Securities Act Section

question 31

Multiple Choice

To prove his/her due diligence defense under Securities Act Section 11 with regard to audited financial statements,an officer of the issuer must prove which of the following?

• A)The officer made a reasonable investigation into the accuracy of the audited financial statements.
• B)The officer believed the financial statements did not omit or misstate a material fact.
• C)The officer had no intent to misstate or omit a material fact in the audited financial statements.
• D)The officer had no reason to believe the financial statements omitted or misstated a material fact.

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Definitions:

Absolute Advantage

Refers to the ability of a country, individual, or firm to produce a good or service more efficiently than competitors, using fewer resources.

Production Possibility Frontiers

An illustration indicating the peak output capabilities for two items, using certain inputs like resources and additional elements.

Wheat

A cereal grain that is a worldwide staple food, grown in numerous varieties.

Cattle

Large domesticated bovines raised for their milk, meat (beef), or hides.