BSAD 3200 Quiz 3 Notes - Quiz 3 Notes/Review BSAD 3200...

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Quiz 3 Notes/Review BSAD 3200 Chapter 26 Franchises-agreement between franchiser and franchisee Rights to trade name, etc. Significant control by franchisor Generally not liable for franchisee torts, debts, etc.,  unless too much day to day control Joint Ventures-two or more parties working together in  project      Often short term   I.e.- two construction companies working on major job May form an l.l.c. Or partnership. Agreement determines  share of profits, etc. Non-profit Corp.  Formed by filing Articles of Incorporation   Usually do not have shareholders     Called members Tax exempt     What do you think? Chapter 28. Secondary markets SEC Secondary Market-trading of securities after IPO    NYSE is a secondary market If security is traded on these markets, periodic filings  must be made and information disclosed Rule 10b-5 makes it illegal to deceive/defraud or manipulate by way of any device of interstate commerce, in connection  with purchase or sale of security Insider Trading - 
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Insider is a board member, executive officer, some  stockholders, for sure Sometimes, employees, corporates lawyers, accountants,  consultants and other third parties may be "insiders" if  they come across inside information in the course of their  jobs. Friends of insiders who receive a "tip" can also violate the law Short swing stockholders- but and sell stock by an insider  within 6 months.  Profits must be returned to company Pump and dump schemes-a person talks up the virtues of a  stock merely to pump up its value, then dumps the stock for  a profit. Willful violations of the Act (scienter-the intent to  defraud), can result in criminal prosecution SEC can also enforce civil remedies (damage suit) Chapter 29 - Accounting Regulation In the wake of huge corporate failures, some of which were  also accounting failures, the federal government passed the  Sarbanes-Oxley act of 2002      Regulates public accounting firms      Strict rules regarding a corporation's internal  controls Created the PCAOB. Public Company Accounting Oversight Board      Overseen by the SEC      Accounting firms doing accounting for publicly traded  companies must register with the PCAOB Oversees whether these accounting firms are following audit  guidelines Can assess fines and penalties Conflicts of interest-limits how much business (consulting,  etc.) an audit firm can do with that same company.  Also  mandates that audit leaders rotate every 5 years
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  • Fall '16
  • Charles Kaiser
  • accounting firms, discrimination employment act, debtor files schedules, liable ­ creditor, Principal breaches duties

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