Question 1

In Stonebridge,Charter Communications engaged in which of the following activities?

Accepted Answer

A) Misclassification of its customer base 
B) Improper capitalization 
C) Delayed reporting of material facts 
D) All of these 
A) Misclassification of its customer base 
B) Improper capitalization 
C) Delayed reporting of material facts 
D) All of these

Question 2

Which of the following would $\underline{\text{not}}$  be considered a security under the 1933 Act?

Accepted Answer

A) limited partnership interest 
B) bonds 
C) pension fund 
D) Subchapter S corporate stock 
A) limited partnership interest 
B) bonds 
C) pension fund 
D) Subchapter S corporate stock

Question 3

The Williams Act only applies to National Stock Exchange companies.

Accepted Answer

A) True 
 B)False

Question 4

The states did not have federal legislation prior to the time of the federal securities laws.

Accepted Answer

A) True 
 B)False

Question 5

The intrastate exemption violates the commerce clause.

Accepted Answer

A) True 
 B)False

Question 6

Section 10(b)violations carry fines of only $10,000.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following $\underline{\text{not}}$ have resale restrictions?

Accepted Answer

A) intrastate sales 
B) Rule 505 
C) Regulation A 
D) none of the above 
A) intrastate sales 
B) Rule 505 
C) Regulation A 
D) none of the above

Question 8

A natural person whose net worth is greater than $1 million is an accredited investor.

Accepted Answer

A) True 
 B)False

Question 9

Pacific West Utility has made a takeover offer to the shareholders of San Diego Edison.The board and management are concerned about the ability of Pacific West to manage San Diego Edison and have solicited the help of Western Power.Western Power will make a tender offer to the shareholders of San Diego Edison that is $1.00 more than Pacific West's offer.Which of the following statements is true?

Accepted Answer

A) Pacific West is the target company. 
B) Western Power is the target company. 
C) Western Power must comply with the Williams Act. 
D) Pacific West need not comply with the Williams Act. 
A) Pacific West is the target company. 
B) Western Power is the target company. 
C) Western Power must comply with the Williams Act. 
D) Pacific West need not comply with the Williams Act.

Question 10

Jones Knight is a small copper mining company with operations in Arizona,South America,and Montana.It is listed on NASDAQ and is preparing to do a public offering for $50,000,000.Which of the following exemptions could Jones Knight use in order to avoid registration?​

Accepted Answer

A) ​Regulation D - Section 506 
B) ​because Jones Knight is publicly traded, the Reg D exemptions are not available to it 
C) intrastate exemption 
D) Section 11 registration 
A) ​Regulation D - Section 506 
B) ​because Jones Knight is publicly traded, the Reg D exemptions are not available to it 
C) intrastate exemption 
D) Section 11 registration

Question 11

A registration approved by the SEC need not be registered at the state level.

Accepted Answer

A) True 
 B)False

Question 12

There are no resale limitations on Regulation A offerings.

Accepted Answer

A) True 
 B)False

Question 13

Shareholder proposals can include topics such as length of directors' terms.

Accepted Answer

A) True 
 B)False

Question 14

J.Rooney is Chairman of Rooney,Pace Group,Inc.and has decided to acquire stock in Pantry Pride.Rooney is able to purchase 7 percent of the stock in October 2016.Is Rooney subject to any SEC requirements? Discuss.

Accepted Answer

Is he trading on inside inform

Question 15

Gwen Knight is a CPA who works in the internal controls area of Winthrop Industries,a NASDAQ company.Gwen has discovered that there are problems with the company's processing of invoices for payments that allow the postponement of those payments.The company is 18 months behind on some payments.Gwen reports the problems to her supervisor.Gwen assumes that her supervisor will notify the head of internal audit and take the appropriate corrective steps.On her next performance evaluation,done three weeks later,Gwen receives her first poor rating in 10 years.She is put on a six-month performance improvement plan.Discuss Gwen's position,rights,and any protections she may have.

Accepted Answer

Gwen works for a publicly traded company

Question 16

Which of the following is $\underline{\text{not}}$ required for the intrastate exemption?

Accepted Answer

A) The investors and issuer must all be residents of the same state. 
B) Of the issuer's income, 100 percent must be earned in its resident state. 
C) Of the issuer's assets, 80 percent must be located in its resident state. 
D) Of the proceeds from the sale, 80 percent must be earned on operations in the state. 
E) All of the above are requirements. 
A) The investors and issuer must all be residents of the same state. 
B) Of the issuer's income, 100 percent must be earned in its resident state. 
C) Of the issuer's assets, 80 percent must be located in its resident state. 
D) Of the proceeds from the sale, 80 percent must be earned on operations in the state. 
E) All of the above are requirements.

Question 17

Attorneys who represent publicly traded companies need not report any financial fraud to boards because of attorney-client privilege.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is $\underline{\text{not}}$ an exempt security under the 1933 Act?

Accepted Answer

A) municipal bonds 
B) insurance policies 
C) promissory notes 
D) annuities 
E) All of the above are exempt securities. 
A) municipal bonds 
B) insurance policies 
C) promissory notes 
D) annuities 
E) All of the above are exempt securities.

Question 19

Describe shareholders' rights under Section 14.

Accepted Answer

Shareholders have the right to receive i

Question 20

Bob's Grocery merges with Pete's Produce and becomes PB Foods.The transaction is a:

Accepted Answer

A) merger. 
B) consolidation. 
C) tender offer. 
D) none of the above 
A) merger. 
B) consolidation. 
C) tender offer. 
D) none of the above

In Stonebridge,Charter Communications engaged in which of the following activities?

Which of the following would $\underline{\text{not}}$ be considered a security under the 1933 Act?

The Williams Act only applies to National Stock Exchange companies.

The states did not have federal legislation prior to the time of the federal securities laws.

The intrastate exemption violates the commerce clause.

Section 10(b)violations carry fines of only $10,000.

Which of the following $\underline{\text{not}}$ have resale restrictions?

A natural person whose net worth is greater than $1 million is an accredited investor.

Jones Knight is a small copper mining company with operations in Arizona,South America,and Montana.It is listed on NASDAQ and is preparing to do a public offering for $50,000,000.Which of the following exemptions could Jones Knight use in order to avoid registration?

A registration approved by the SEC need not be registered at the state level.

There are no resale limitations on Regulation A offerings.

Shareholder proposals can include topics such as length of directors' terms.

J.Rooney is Chairman of Rooney,Pace Group,Inc.and has decided to acquire stock in Pantry Pride.Rooney is able to purchase 7 percent of the stock in October 2016.Is Rooney subject to any SEC requirements? Discuss.

Which of the following is $\underline{\text{not}}$ required for the intrastate exemption?

Attorneys who represent publicly traded companies need not report any financial fraud to boards because of attorney-client privilege.

Which of the following is $\underline{\text{not}}$ an exempt security under the 1933 Act?

Describe shareholders' rights under Section 14.

Bob's Grocery merges with Pete's Produce and becomes PB Foods.The transaction is a:

Introduction to Law

Business Ethics and Social Responsibility

The Judicial System

Managing Disputes: Alternative Dispute Resolution and Litigation Strategies

Business and the Constitution

Administrative Law

International Law

Business Crime

Business Torts

Environmental Regulation and Sustainability

Contracts and Sales: Introduction and Formation

Contracts and Sales: Performance,Remedies,and Collection

Product Advertising and Liability

Business Competition: Antitrust

Business and Intellectual Property Law

Management of Employee Conduct: Agency

Governance and Structure: Forms of Doing Business

Management of Employee Welfare

Management: Employment Discrimination

Filters

Exam 18: Governance and Regulation: Securities Law

In Stonebridge,Charter Communications engaged in which of the following activities?

Which of the following would not‾\underline{\text{not}}not​ be considered a security under the 1933 Act?

The Williams Act only applies to National Stock Exchange companies.

The states did not have federal legislation prior to the time of the federal securities laws.

The intrastate exemption violates the commerce clause.

Section 10(b)violations carry fines of only $10,000.

Which of the following not‾\underline{\text{not}}not​ have resale restrictions?

A natural person whose net worth is greater than $1 million is an accredited investor.

Jones Knight is a small copper mining company with operations in Arizona,South America,and Montana.It is listed on NASDAQ and is preparing to do a public offering for $50,000,000.Which of the following exemptions could Jones Knight use in order to avoid registration?​

A registration approved by the SEC need not be registered at the state level.

There are no resale limitations on Regulation A offerings.

Shareholder proposals can include topics such as length of directors' terms.

J.Rooney is Chairman of Rooney,Pace Group,Inc.and has decided to acquire stock in Pantry Pride.Rooney is able to purchase 7 percent of the stock in October 2016.Is Rooney subject to any SEC requirements? Discuss.

Which of the following is not‾\underline{\text{not}}not​ required for the intrastate exemption?

Attorneys who represent publicly traded companies need not report any financial fraud to boards because of attorney-client privilege.

Which of the following is not‾\underline{\text{not}}not​ an exempt security under the 1933 Act?

Describe shareholders' rights under Section 14.

Bob's Grocery merges with Pete's Produce and becomes PB Foods.The transaction is a:

Introduction to Law

Business Ethics and Social Responsibility

The Judicial System

Managing Disputes: Alternative Dispute Resolution and Litigation Strategies

Business and the Constitution

Administrative Law

International Law

Business Crime

Business Torts

Environmental Regulation and Sustainability

Contracts and Sales: Introduction and Formation

Contracts and Sales: Performance,Remedies,and Collection

Product Advertising and Liability

Business Competition: Antitrust

Business and Intellectual Property Law

Management of Employee Conduct: Agency

Governance and Structure: Forms of Doing Business

Management of Employee Welfare

Management: Employment Discrimination

Filters

Which of the following would $\underline{\text{not}}$ be considered a security under the 1933 Act?

Which of the following $\underline{\text{not}}$ have resale restrictions?

Jones Knight is a small copper mining company with operations in Arizona,South America,and Montana.It is listed on NASDAQ and is preparing to do a public offering for $50,000,000.Which of the following exemptions could Jones Knight use in order to avoid registration?

Which of the following is $\underline{\text{not}}$ required for the intrastate exemption?

Which of the following is $\underline{\text{not}}$ an exempt security under the 1933 Act?