In Comparison to the Burden of Proof Required of Plaintiffs

question 61

Multiple Choice

In comparison to the burden of proof required of plaintiffs in civil lawsuits against independent auditors under common law,section 10(b) of the Securities Exchange Act of 1934

• A) Is the same regarding plaintiffs' need to prove damages or losses.
• B) Is the same regarding plaintiffs' need to establish privity or a beneficiary relationship with auditors.
• C) Does not require that plaintiffs prove their reliance on materially misstated financial statements.
• D) Does not require that plaintiffs prove that relying on the materially misstated financial statements caused their losses.

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Definitions:

Conventional Level

A stage in Kohlberg's theory of moral development characterized by an adherence to rules and conventions based on societal standards and laws.

Kohlberg's Theory

A theory of moral development proposing that individuals progress through a series of stages in their ability to make ethical decisions.

Moral Development

The process of gradually acquiring values, attitudes, and behaviors considered morally right in one's culture.

Postconventional Level

A stage in Kohlberg's theory of moral development where moral reasoning is based on abstract reasoning and principles, beyond societal norms.