Section 11(b) of the Securities Act of 1933 provides that individuals can be sued and maybe liable for investors’ losses in connection with a public securities offering under which ofthese circumstances?a. The chairman of the board of directors performed a reasonable investigation of facts inconnection with preparing the section in the registration statement concerning the specification of the use of the proceeds of the offering.b. A consulting engineer performed a reasonable investigation and reported in the registration statement on the feasibility of construction of a roadway to be financed with theoffering proceeds.c. The president of the issuing entity had no reason to doubt the report of the consultingengineer, although the president did not perform a separate reasonable investigation ofher own.d. The officers of the issuing entity were relieved that the independent auditors did notmake an issue about the excessive valuation of inventory held to support construction inprogress

Question

Section 11(b) of the Securities Act of 1933 provides that individuals can be sued and may
be liable for investors’ losses in connection with a public securities offering under which of
these circumstances?
a. The chairman of the board of directors performed a reasonable investigation of facts in
connection with preparing the section in the registration statement concerning the specification of the use of the proceeds of the offering.
b. A consulting engineer performed a reasonable investigation and reported in the registration statement on the feasibility of construction of a roadway to be financed with the
offering proceeds.
c. The president of the issuing entity had no reason to doubt the report of the consulting
engineer, although the president did not perform a separate reasonable investigation of
her own.
d. The officers of the issuing entity were relieved that the independent auditors did not
make an issue about the excessive valuation of inventory held to support construction in
progress

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