Ch41-TB2-WBL-10O¦êv-F to Eric

Ch41-TB2-WBL-10O¦Ã&ordf...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 41 Corporations— Securities Law and Corporate Governance N.B.:   TYPE  indicates that a question is new, modified, or unchanged, as  follows. N A question  new  to this edition of the Test Bank. = A question  modified  from the previous edition of the Test Bank, = A question  included  in the previous edition of the Test Bank. TRUE/FALSE QUESTIONS 1. The U.S. Internal Revenue Service prosecutes criminal violations of federal  securities law. ANSWER: F PAGE: 822 TYPE: + 2. A security that does not qualify for an exemption must be registered before  it is offered to the public through a facility of interstate commerce. ANSWER: T PAGE: 823 TYPE: = 3. Sales of securities may not occur until ninety days after registration. ANSWER: F PAGE: 824 TYPE: + 4. Generally, stock offerings that involve a small amount of money are  not  ex- empt from securities registration requirements. 157
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
158 TEST BANK 2—UNIT EIGHT: BUSINESS ORGANIZATIONS ANSWER: F PAGE: 825 TYPE: N
Background image of page 2
CHAPTER 41: CORPORATIONS—SECURITIES LAW AND CORPORATE GOVERNANCE 159 5. An offering of $4 million in securities by a non-investment company can be  exempt from some of the requirements of the Securities Act of 1933. ANSWER: T PAGE: 826 TYPE: + 6. An offering of $10 million in securities by a non-investment company is  not  exempt from the Securities Act of 1933. ANSWER: T PAGE: 826 TYPE: N 7. Generally, stock offerings that are made in a limited manner during any  twelve-month period are exempt from securities registration requirements. ANSWER: T PAGE: 826 TYPE: + 8. An offering of securities to residents of the state in which the offering  company is organized and does business may be exempt from federal reg- istration requirements. ANSWER: T PAGE: 826 TYPE: = 9. Those who buy securities and suffer harm as a result of false statements  may bring a suit in a federal court to recover their losses. ANSWER: T PAGE: 828 TYPE: = 10. Any corporation with more than $10 million in assets must register with  the Securities and Exchange Commission. ANSWER: T PAGE: 828 TYPE: + 11. Section 10(b) of the Securities Exchange Act of 1934 covers only corporate  officers, directors, and majority shareholders. ANSWER: F PAGE: 828 TYPE: = 12. SEC   Rule   10b-5   applies   in   nearly   all   cases   involving   the   trading   of  securities. ANSWER: T PAGE: 829 TYPE: =
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
TEST BANK 2—UNIT EIGHT: BUSINESS ORGANIZATIONS 13. Publicly held companies that make financial forecasts about themselves  can be liable to those who rely on the forecasts if they turn out to be wrong. ANSWER:
Background image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 15

Ch41-TB2-WBL-10O¦Ã&ordf...

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online