Meri,an Accountant,includes a False Statement in a Report for Novelty

question 33

Multiple Choice

Meri,an accountant,includes a false statement in a report for Novelty Paper Products,Inc.(NPPI) that is filed with the Securities and Exchange Com?mission.When Otho buys stock in NPPI and loses money on the investment,he files a suit against Meri,alleging fraud under the 1934 Securities Exchange Act.To avoid liability,Meri can show that she

• A)intended to defraud NPPI,not Otho.
• B)intended to profit on stock trades generally,not only with Otho.
• C)is an otherwise competent accountant.
• D)was not aware her statement was false.

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Definitions:

Deviance

Behaviors, actions, or conditions that violate societal norms or standards, leading to social disapproval, sanction, or exclusion.

Moral Panic

A widespread feeling of fear and concern among the general public, often disproportionate to the actual threat, about an issue perceived to threaten social norms.

Media Representation

The portrayal of events, people, and circumstances through various media channels, which can significantly shape public perception and discourse.

Merton's Five Adaptations

Robert K. Merton's theory that individuals adapt to societal pressures in five ways: conformity, innovation, ritualism, retreatism, and rebellion.