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:

Type D Personality

A personality trait characterized by a tendency towards negative affectivity (worry, irritability, gloom) and social inhibition.

Neuroticism

A personality trait characterized by the tendency to experience negative emotions such as anxiety, depression, and anger more frequently and intensely than others.

Type T Person

Individuals who have a high tolerance for risk and a penchant for thrill-seeking and adventure.

Bungee Jumping

An extreme sport involving jumping from a high structure while connected to a large elastic cord, experiencing free-falling and a rebound.