Meri,an Accountant,includes a False Statement in a Report for Novelty

question 33

Multiple Choice

Meri,an accountant,includes a false statement in a report for Novelty Paper Products,Inc.(NPPI) that is filed with the Securities and Exchange Com?mission.When Otho buys stock in NPPI and loses money on the investment,he files a suit against Meri,alleging fraud under the 1934 Securities Exchange Act.To avoid liability,Meri can show that she

• A)intended to defraud NPPI,not Otho.
• B)intended to profit on stock trades generally,not only with Otho.
• C)is an otherwise competent accountant.
• D)was not aware her statement was false.

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Definitions:

Genetic Drift

A mechanism of evolution caused by random changes in the frequency of alleles within a population over time.

Natural Selection

The evolutionary process where organisms with traits that enhance survival and reproduction are more likely to pass on their genes to the next generation.

Hemispheric Lateralization

The distinction between the functional specializations of the human brain's left and right hemispheres, such as language in the left and spatial abilities in the right.

Left-Brain

The left hemisphere of the brain, often associated with analytical thought, logic, language, and mathematical processes.