Which of the Following Would Not Need to Be Demonstrated

question 51

Multiple Choice

Which of the following would not need to be demonstrated by third parties bringing suit against auditors for losses sustained under the Securities Act of 1933?

• A)Auditors were aware of the materially misstated financial statements.
• B)Third-party purchasers suffered a loss.
• C)The client's financial statements contained a material misstatement.
• D)Purchasers would need to demonstrate all of the above.

Understand the conditions under which specific orders, like orders for specific performance, can be sought to enforce contract terms.

Acknowledge the effect of personal and unforeseeable circumstances (like illness or unforeseen incapacity) on the performance of contractual obligations.

Understand the general principles related to the assignment of contracts.

Recognize the rights and enforceability of third-party beneficiaries in a contract.

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Definitions:

Comparative Advantage

The ability of a country or firm to produce a particular good or service at a lower opportunity cost than others, leading to more efficient global production and trade.

Dumping

The practice of selling a product in a foreign market at a price lower than its domestic market or below its cost of production, often to increase market share or eliminate surplus.

Per Capita GDP

is a measure of the economic output of a country divided by its population, providing an average economic welfare indicator.

Trade Barriers

Measures that governments or public authorities introduce to make imported goods or services less competitive than locally produced goods and services.