Based on the scenario above, the economic concept which Frakie is faced with is OPPORTUNITY COST. Opportunity cost refers to a benefit or value that a person could have received but which he gave up in order to take another course of action. Thus, an opportunity cost represents an alternative given up when a decision is made.
105 km/hr is the same as 65.244 miles per hour. You can do this by doing unit conversions until you get the satisfied units. Then you multiply and reduce the fraction. In this case, the answer is 65.244 miles per hour.
Answer:
b) If auditors can demonstrate due diligence.
Explanation:
Under the liability provisions of section 11 of the Securities Act of 1933, auditors may be liable to any purchaser of a security for certifying materially misstated financial statements that are included in the registration statement. Under section 11, auditors usually will not be liable to the purchaser if auditors can demonstrate due diligence.
Section 11 of the Securities Act of 1933, 15 U.S.C. § 77k (1988), provides investors with the ability to hold issuers and others liable for any damage incurred and caused by false statements of fact or even material omissions of fact within registration statements as at when effective.
The Securities Act of 1933 was used to regulate the stock market as the first federal legislation. With this act, power was given to the federal government and taken away from the state governments.
Hence, the Securities Act of 1933 is used to protect investors from frauds by creating a set of standard rules.
In conclusion, auditors usually will not be liable to the purchaser if auditors can demonstrate due diligence in their services and responsibilities.
