To Prove His/her Due Diligence Defense Under Securities Act Section

question 31

Multiple Choice

To prove his/her due diligence defense under Securities Act Section 11 with regard to audited financial statements,an officer of the issuer must prove which of the following?

• A)The officer made a reasonable investigation into the accuracy of the audited financial statements.
• B)The officer believed the financial statements did not omit or misstate a material fact.
• C)The officer had no intent to misstate or omit a material fact in the audited financial statements.
• D)The officer had no reason to believe the financial statements omitted or misstated a material fact.

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Definitions:

1901

The year 1901 marks the beginning of the 20th century and is notable for various significant global events and innovations.

Laval

A city in the Canadian province of Quebec, located on Île Jésus across from Montreal, known for its educational institutions and cultural diversity.

Edge City

A relatively new, sprawling urban area situated on the outskirts of a larger city, characterized by extensive office and retail space.

Urban Village

A concept in urban planning that combines residential and commercial areas mimicking the traditional small village, aimed at creating self-sustained communities.