Under Rule 10b-5 of the 1934 Act

question 49

Multiple Choice

Under Rule 10b-5 of the 1934 Act:

• 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 may 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:

Franchise Agreement

A legal contract between a franchisor and a franchisee, detailing the terms under which the franchisee operates a segment of the franchisor's business.

Independent Firms

Businesses that operate autonomously, not owned by or affiliated with larger corporations, often characterized by unique cultures and personalized services.

BRIC Countries

An acronym referring to the economies of Brazil, Russia, India, and China, which are distinguished by their fast growth and large potential markets.

Tariffs

Taxes imposed on imported goods, often used by governments to control trade flows, protect domestic industries, or generate revenue.