Which of the Following Is True of the Difference Between

question 19

Multiple Choice

Which of the following is true of the difference between fraud and misrepresentation?

• A) There is no requirement of materiality in fraud cases, whereas misrepresentation requires materiality.
• B) Unlike misrepresentation, the injured party in fraud cases has the additional option of suing in tort for damages.
• C) Misrepresentation requires knowledge of the falsity of the misstatement, but fraud doesn't.
• D) False statements of opinion can be fraud, but not misrepresentation.

---

Definitions:

Business Discipline

Pertains to the adherence to management theories and practices that aim to improve efficiency, productivity, and accountability in business operations.

Association Is Causation Fallacy

The association is causation fallacy occurs when a correlation between two variables is mistaken for a causal relationship, without sufficient evidence to support such a claim.

Secondary Effects

Unintended consequences of economic actions, which can be positive or negative and occur as indirect results.

Economic Actions

Measures and decisions taken by individuals, firms, or governments that affect the allocation of resources and distribution of goods and services in an economy.