Question 1

Regulation A filings are exempt from Section 11 liability.

Accepted Answer

A) True 
 B)False

Question 2

Under Sarbanes-Oxley,how often must the audit partner in charge of an audit client be rotated?

Accepted Answer

A) every year 
B) every two years 
C) every five years 
D) There is no rotation requirement. 
A) every year 
B) every two years 
C) every five years 
D) There is no rotation requirement.

Question 3

All Regulation D offerings canuse general solicitations.

Accepted Answer

A) True 
 B)False

Question 4

The intrastate registration exemption requires that 100 percent of the offerees be residents of the same state as the issuer.

Accepted Answer

A) True 
 B)False

Question 5

Under Sarbanes-Oxley,every board audit committee must have at least one financial expert.

Accepted Answer

A) True 
 B)False

Question 6

The due diligence defense to Section 11 is difficult to prove.

Accepted Answer

A) True 
 B)False

Question 7

Explain Goldman Sachs trading huddles and its implications.

Accepted Answer

Goldman Sachs used trading huddles to co

Question 8

A merit review standard is the same as the SEC review.

Accepted Answer

A) True 
 B)False

Question 9

A hostile takeover is one supported by management.

Accepted Answer

A) True 
 B)False

Question 10

Which firms would be required to file a 10-K?

Accepted Answer

A) company with 600 shareholders and $5 million in assets and not listed on national exchange 
B) company with 300 shareholders and $10 million in assets and not listed on a national exchange 
C) company with 700 shareholders and $6 million in assets and listed on a national exchange 
D) all of the above 
A) company with 600 shareholders and $5 million in assets and not listed on national exchange 
B) company with 300 shareholders and $10 million in assets and not listed on a national exchange 
C) company with 700 shareholders and $6 million in assets and listed on a national exchange 
D) all of the above

Question 11

Rule 506 has no dollar limitations.

Accepted Answer

A) True 
 B)False

Question 12

Shareholders who solicit proxies need not comply with Section 14 of the 1934 Act.

Accepted Answer

A) True 
 B)False

Question 13

Section 10(b)would apply to which of the following situations?

Accepted Answer

A) a student who found negative information about a company while doing research in the university library and positioned himself short in the stock 
B) an accounting firm performing an audit in a grossly negligent fashion that results in misleading financial statements 
C) a guest at a reception trading on information she overheard at the party 
D) none of the above 
A) a student who found negative information about a company while doing research in the university library and positioned himself short in the stock 
B) an accounting firm performing an audit in a grossly negligent fashion that results in misleading financial statements 
C) a guest at a reception trading on information she overheard at the party 
D) none of the above

Question 14

Why was Goldman Sachs not obligated to disclose its position on securities it was marketing to its clients?

Accepted Answer

A) Because the offerings were all exempt from the need for furnishing disclosures to investors. 
B) Because the offerings involved crowd funding. 
C) Because Goldman was using the 506 exemption. 
D) Because Goldman is not a 1934 Act registered company. 
A) Because the offerings were all exempt from the need for furnishing disclosures to investors. 
B) Because the offerings involved crowd funding. 
C) Because Goldman was using the 506 exemption. 
D) Because Goldman is not a 1934 Act registered company.

Question 15

State antitakeover statutes that delay takeovers are unconstitutional.

Accepted Answer

A) True 
 B)False

Question 16

If the earnings of a company are revealed to be false,the officers who earned bonuses based on these earnings must forfeit them.

Accepted Answer

A) True 
 B)False

Question 17

Under Sarbanes-Oxley,which of the following would be a conflict of interest for the outside auditor of a company?

Accepted Answer

A) Providing management consulting services to the company, too. 
B) Providing actuarial service to the company, too. 
C) Designing the company's financial system. 
D) all of the above 
A) Providing management consulting services to the company, too. 
B) Providing actuarial service to the company, too. 
C) Designing the company's financial system. 
D) all of the above

Question 18

State antitakeover statutes:

Accepted Answer

A) generally require additional filings beyond Williams Act requirements. 
B) generally deal with corporate governance. 
C) are valid only against corporations formed after passage of the law. 
D) none of the above 
A) generally require additional filings beyond Williams Act requirements. 
B) generally deal with corporate governance. 
C) are valid only against corporations formed after passage of the law. 
D) none of the above

Question 19

A Section 12 violation results from making a material misstatement in a registration statement.

Accepted Answer

A) True 
 B)False

Question 20

Short-swing profits are acceptable if there was no inside information.

Accepted Answer

A) True 
 B)False

Regulation A filings are exempt from Section 11 liability.

Under Sarbanes-Oxley,how often must the audit partner in charge of an audit client be rotated?

All Regulation D offerings canuse general solicitations.

The intrastate registration exemption requires that 100 percent of the offerees be residents of the same state as the issuer.

Under Sarbanes-Oxley,every board audit committee must have at least one financial expert.

The due diligence defense to Section 11 is difficult to prove.

Explain Goldman Sachs trading huddles and its implications.

A merit review standard is the same as the SEC review.

A hostile takeover is one supported by management.

Which firms would be required to file a 10-K?

Rule 506 has no dollar limitations.

Shareholders who solicit proxies need not comply with Section 14 of the 1934 Act.

Section 10(b)would apply to which of the following situations?

Why was Goldman Sachs not obligated to disclose its position on securities it was marketing to its clients?

State antitakeover statutes that delay takeovers are unconstitutional.

If the earnings of a company are revealed to be false,the officers who earned bonuses based on these earnings must forfeit them.

Under Sarbanes-Oxley,which of the following would be a conflict of interest for the outside auditor of a company?

State antitakeover statutes:

A Section 12 violation results from making a material misstatement in a registration statement.

Short-swing profits are acceptable if there was no inside information.

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

Regulation A filings are exempt from Section 11 liability.

Under Sarbanes-Oxley,how often must the audit partner in charge of an audit client be rotated?

All Regulation D offerings canuse general solicitations.

The intrastate registration exemption requires that 100 percent of the offerees be residents of the same state as the issuer.

Under Sarbanes-Oxley,every board audit committee must have at least one financial expert.

The due diligence defense to Section 11 is difficult to prove.

Explain Goldman Sachs trading huddles and its implications.

A merit review standard is the same as the SEC review.

A hostile takeover is one supported by management.

Which firms would be required to file a 10-K?

Rule 506 has no dollar limitations.

Shareholders who solicit proxies need not comply with Section 14 of the 1934 Act.

Section 10(b)would apply to which of the following situations?

Why was Goldman Sachs not obligated to disclose its position on securities it was marketing to its clients?

State antitakeover statutes that delay takeovers are unconstitutional.

If the earnings of a company are revealed to be false,the officers who earned bonuses based on these earnings must forfeit them.

Under Sarbanes-Oxley,which of the following would be a conflict of interest for the outside auditor of a company?

State antitakeover statutes:

A Section 12 violation results from making a material misstatement in a registration statement.

Short-swing profits are acceptable if there was no inside information.

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