Gold, CPA, rendered an unqualified opinion on the financial statements of Eastern Power Company. Egan purchased Eastern bonds in a public offering subject to the Securities Act of 1933. The registration statement filed with the SEC included the audited financial statements. Gold is being sued by Egan under Section 11 of the Securities Act of 1933 for the misstatements contained in the financial statements. To prevail, Egan must prove
A. Neither scienter nor reliance.
B. Reliance but not scienter.
C. Scienter but not reliance.
D. Both scienter and reliance.
A. Neither scienter nor reliance.
You might also like to view...
Systems that use a sequential master files employ a backup technique called
a. Batch check b. Destructive update c. Grandfather-father-son d. Master file backup e. None of the above
Which of the following best represents the disadvantages of conducting test markets as discussed by your authors?
A) cost, competitor intervention, and government regulations of test markets B) fallibility of results, cost, exposure of product/service to competition and ethical issues C) cost, delay in getting to the market first, competitive awareness of the product/service D) inability to test marketing mix variables E) disadvantages were not discussed in your book
If the management decision problem is: "Should a new product be introduced?" what is the most appropriate marketing research problem?
A) determining the price elasticity of demand and the impact on sales and profits of various levels of price changes B) determining consumer preferences and purchase intentions for the proposed new product C) determining the effectiveness of the current advertising campaign D) determining the impact of new distribution outlets
The percentage of earnings retained is computed by dividing retained earnings by total stockholders' equity
Indicate whether the statement is true or false