Which of the Following Is Most Likely to Constitute a Misstatement

question 54

Multiple Choice

Which of the following is most likely to constitute a misstatement that can give rise to fraud or misrepresentation liability?

• A)A broker says to his client,"I think that this car's engine has been overhauled."
• B)A customer sales representative of the most popular brand of car says to the customer,"This is the highest selling car in town."
• C)An owner of a house gets his ceiling painted to conceal a leaking roof and says,"I got the ceiling painted recently."
• D)The owner of an unencumbered horse states,"I am selling the horse to raise funds for my ranch."

---

Definitions:

Goal Setting

The process of identifying specific, measurable, attainable, relevant, and time-bound objectives to be achieved in the future.

Performance Relationship

The connection between various factors, such as employee behavior or work environment, and their impact on job performance.

Motivation Theories

A set of principles concerning what drives individuals to initiate and sustain actions towards achieving their goals.

Expectancy Theory

A motivational theory that explains how individuals decide to behave in ways that they believe will lead them to desired outcomes based on expectations of future events.