Which of the Following Is True with Regard to Misrepresentation

question 6

Multiple Choice

Which of the following is true with regard to misrepresentation?

• A) Fraud in the execution is defined as some misrepresentation about the subject of the contract.
• B) Fraud in the inducement is defined as a misrepresentation as to the character of the contract.
• C) If a misrepresentation is intentional, it is non-fraudulent.
• D) If a misrepresentation is unintentional, it is fraudulent.
• E) A non-fraudulent misrepresentation can be innocent.

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Definitions:

Weighted Average Cost

Weighted average cost often refers to the weighted average cost of capital (WACC), a calculation of a firm's cost of capital in which each category of capital is proportionately weighted.

Face Value

The nominal or dollar value printed on a security or currency.

Flotation Costs

Fees and other costs incurred by a company during the process of issuing new securities, including legal, underwriting, and registration expenses.