Pat,an Accountant,includes a False Statement in a Report for Quantity

question 53

Multiple Choice

Pat,an accountant,includes a false statement in a report for Quantity Overstock,Inc.,that is filed with the Securities and Exchange Commis-sion.Quantity publishes a misleading ad about its future prospects.Rita sees the ad and calls Stan,who buys stock in Quantity.Under Section 18 of the Securities Ex-change Act of 1934,liability may attach to

• A)Pat's report.
• B)Quantity's ad.
• C)Rita's call.
• D)Stan's purchase.

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Definitions:

Human Resources

The department within an organization that focuses on recruitment, management, and guidance for the people who work in it.

Hostile Attribution Bias

A cognitive bias in which individuals tend to interpret others’ behaviors as having hostile intent, even when it's ambiguous or benign.

Retribution Bias

The tendency to seek punishment for perceived wrongs or injustices, often influenced by emotions rather than rational judgment.

Potency Bias

The tendency to see powerful individuals as more influential or important than they actually are.