Under Rule 10b-5 of the Securities Act of 1934, _____

question 19

Multiple Choice

Under Rule 10b-5 of the Securities Act of 1934, _____.

• A) the plaintiff must prove that the accountant acted with scienter
• B) the intent to deceive is not an element of the offense
• C) an accountant will never be liable to a purchaser for a misstatement of material fact in the registration statement
• D) an accountant must prove he exercised due diligence to escape liability

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Definitions:

Fulltime Job

Employment in which an individual works a minimum number of hours defined by their employer as full-time.

Decent Pension

A retirement plan that provides individuals with sufficient income and benefits to maintain a reasonable standard of living after retirement.

Coordinated Behavior

Actions or activities that are managed or directed in a way to ensure a harmonious and efficient achievement of goals.

Organizational Feature

Describes any distinctive characteristic or aspect of an organization, such as its culture, structure, processes, or practices.