A(n)________ Fraud Applies When a Professional Misstates a Material Fact

question 40

Multiple Choice

A(n) ________ fraud applies when a professional misstates a material fact and recklessly or grossly negligently fails to ascertain the truth of the statement.

• A)constructive
• B)scienter
• C)Ultramares
• D)fabrication

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Definitions:

Wealth

Money and economic assets that a person or family owns.

Income

Amount of money a person receives, usually through wages or salaries.

Stocks

Shares of ownership in a corporation, representing a claim on part of the corporation's assets and earnings.

Property

Legal rights or interests over physical objects, land, or intellectual creations, entitling the owner to use, sell, or lease them.