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NEW QUESTION: 1
Mr. Big of HiGrow Corporation needs more money to support the exceptional growth rate that his firm is enjoying. He meets with BigFee Investment Banker, who agrees to handle the IPO for HiGrow. As part of the process, BigFee's staff works with HiGrow's accountants to prepare the registration statement that is filed with the SEC. After the issue has been sold to the public, Mr. Sharp, a CPA who has invested in the stock of HiGrow, discovers that there are some accounting irregularities in the financial statements provided in HiGrow's prospectus.
Who can be sued for the misleading statements?
I. Mr. Big
II. Big Fee Investment Banker
III. HiGrow's accountants
IV. HiGrow's attorneys
A. I, III, and IV only
B. II and III only
C. I and II only
D. I, II, III, and IV
Answer: D
Explanation:
Explanation/Reference:
Explanation: All of the entities can be sued for misleading statements found in HiGrow's financial statements. The Securities Act of 1933 holds any individual who participates in bringing the new issue to the public civilly liable for misrepresentations found in the prospectus.

NEW QUESTION: 2
If a business venture has a 60-percent chance to earn $2 million and a 20-percent chance to lose $1.5 million, what is the expected monetary value of the venture?
A. $300,000
B. -$50,000
C. $900,000
D. $500,000
Answer: C
Explanation:
EMV = ($2M x 60%) + (-$1.5M x 20%) = ($1.2M) + (-$300,000) = $900,000 [Planning] Frame 2002, 192 PMI@, PMBOK@ Guide, 2013, 339

NEW QUESTION: 3

A. Option B
B. Option C
C. Option A
D. Option D
Answer: B