Obie Accuses Portia,a Broker with QT Financial Services,of Fraudulently Inducing

question 4

Multiple Choice

Obie accuses Portia,a broker with QT Financial Services,of fraudulently inducing him to invest in Riske Development Company,whose stock price declines in value.The reliance that gives rise to liability for fraud requires

• A)a subjective,not an objective,statement.
• B)misrepresentation of a fact knowing that it is false.
• C)puffery.
• D)seller's talk.

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Definitions:

Exchange Rates

The rate at which one currency can be exchanged for another, influencing how much of one currency you get for another.

Financial Statements

Formal records of the financial activities and position of a business, individual, or other entity, typically including the balance sheet, income statement, and cash flow statement.

Interim

Refers to the financial reports that are produced for a period shorter than a fiscal year, often quarterly.

Foreign Currency Borrowing

The action of taking a loan denominated in a currency other than the domestic currency of the entity borrowing.