Which of the Following Would Be a Logical Consequence of the Private

question 9

Multiple Choice

Which of the following would be a logical consequence of the Private Securities Litigation Reform Act of 1995?

• A)Each negligent party is only liable for the portion of damages for which it is responsible
• B)Each negligent party could be held liable for the total of damages suffered
• C)Auditors have tended to neglect their responsibility of due diligence
• D)The threat of private enforcement against accountants has increased

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Definitions:

Influence Exchange Rates

Refers to the impact of various economic, political, and market factors on the value of one currency in relation to another.

Fixed Exchange Rate System

A currency system where the value of a country's currency is pegged to another currency, a basket of currencies, or a commodity like gold.

Exchange Rate

The value of one currency for the purpose of conversion to another.

Governments

The governing bodies of a nation, state, or community, responsible for creating and enforcing laws and policies.