Which of the Following Is True of Fraudulent Misrepresentation

question 11

Multiple Choice

Which of the following is true of fraudulent misrepresentation?

• A) A fraudulent misrepresentation is a crime.
• B) Fraudulent misrepresentation is a misstatement of facts that is unintentionally made and justifiably relied upon.
• C) If a statement of fact is made false by later events, it must be disclosed as false.
• D) A half-truth cannot amount to misrepresentation.
• E) A typist's unnoticed error in a letter cannot amount to misrepresentation.

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Definitions:

APB Opinion No.14

An accounting guideline issued by the Accounting Principles Board addressing the accounting for convertible securities and the exercise of conversion options in financial statements.

Conversion Provision

A clause in a security or loan that allows the holder to convert into a different security, typically common stock, under certain conditions.

Callable Preferred Stock

Callable Preferred Stock is a type of preferred stock that gives the issuer the right to redeem the stock at a predetermined price after a specified date.

Recall Price

The price at which a company can recall its shares or bonds before their maturity date, usually at a premium.