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:

Credit

A financial term that refers either to the ability to borrow money or the act of providing goods or services with the expectation of future payment.

Debit Card

A card that immediately takes funds from a user's checking account to cover the cost of a purchase.

Power-Saving Mode

A feature in electronic devices intended to reduce energy consumption by lowering power use or shutting down non-essential components when not actively used.

Hard Drive

A storage device used to save software, documents, and other digital content.