Which of the Following Statements Concerning the Liability Provisions of the Securities

question 31

Multiple Choice

Which of the following statements concerning the liability provisions of The Securities Act (1933) ,is true?

• A)All people who might be included in a registration legal action must prove that they made a "reasonable investigation" of the financial statements.
• B)The major burdens of affirmative proof in a suit against the auditor shift from the injured plaintiff to the expert accountant.
• C)The purchaser-plaintiff must prove that they relied on the financial statements in the registration statement.
• D)The provisions of the Securities Act do not apply to companies who file a registration statement.

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Definitions:

Job Rotation

A human resource management strategy where employees are moved between different jobs to increase job variety and to provide them with a broader understanding of the business.

Enriched Jobs

The process of redesigning jobs to incorporate greater variety of work content, increased autonomy, and opportunities for personal growth, enhancing job satisfaction.

Job Knowledge

Understanding and information relevant to a specific job, including the skills and experience necessary to perform its duties competently.

Psychological States

Conditions of the mind that influence an individual's emotional and cognitive functions.