Under Section 11 of the Securities Act of 1933,in Order

question 32

Multiple Choice

Under Section 11 of the Securities Act of 1933,in order to establish the liability of an auditor who prepared a defective registration statement,a plaintiff must prove that:

• A)he/she purchased securities issued pursuant to the defective registration statement.
• B)the auditor was negligent in preparing the registration statement.
• C)the auditor acted with scienter in preparing the registration statement.
• D)he/she was in privity of contract with the auditor.

---

Definitions:

Organizational Change

The process through which companies or institutions modify existing processes, culture, or structures to achieve new objectives or improve performance.

Structure Change

Modifications or alterations in the organizational architecture, including reshaping departments, authority lines, and job roles to improve efficiency or adapt to new strategies.

Cohesive Group

A group in which members bond tightly with one another and remain motivated to stay part of the group due to shared goals or values.

Employee Resistance

Opposition or pushback by employees toward changes or policies introduced in the workplace, often rooted in fear of the unknown or perceived negative impacts.