To Be Successful in a Civil Action Under Section 11

question 86

Multiple Choice

To be successful in a civil action under section 11 of the Securities Act of 1933 against auditors for liability for a materially misstated registration statement,the plaintiff must prove the

• A) Auditors' intent to deceive, yes; plaintiff's reliance on the registration statement, yes.
• B) Auditors' intent to deceive, yes; plaintiff's reliance on the registration statement, no.
• C) Auditors' intent to deceive, no; plaintiff's reliance on the registration statement, yes.
• D) Auditors' intent to deceive, no; plaintiff's reliance on the registration statement, no.

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Definitions:

Design Thinking

A problem-solving approach that involves empathizing with users, defining problems, ideating, prototyping, and testing.

Practice of Entrepreneurship

The ongoing engagement in activities related to starting and managing new business ventures.

Inspiration Phase

Refers to the initial stage in a creative or project development process where ideas are generated, and motivation is sparked.

Observation

The action or process of attentively watching or noting phenomena or behaviors as they occur naturally, often for the purpose of data collection and analysis.