Question 1

Section 404 of Sarbanes-Oxley is the section that requires certification of the adequacy of a company's internal controls.

Accepted Answer

A) True 
 B)False

Question 2

Only directors can be held liable for a Section 11 violation.

Accepted Answer

A) True 
 B)False

Question 3

A bond is not considered a security under federal law.

Accepted Answer

A) True 
 B)False

Question 4

Section 10(b)applies to corporate insiders and tippees.

Accepted Answer

A) True 
 B)False

Question 5

The shareholders of Tennis Man,Inc.have just approved an amendment to their articles of incorporation that requires 75 percent of all shareholders to approve a merger before it can take place.The amendment is an example of:

Accepted Answer

A) a tender offer. 
B) an illegal act preempted by the Williams Act. 
C) a valid antitakeover defense. 
D) none of the above 
A) a tender offer. 
B) an illegal act preempted by the Williams Act. 
C) a valid antitakeover defense. 
D) none of the above

Question 6

Consider the following transactions by a director of a corporation listed on the National Stock Exchange.
​September 1,2016,purchased 100 shares of his company's stock at $10 per share.
​October 30,2016,sold the 100 shares of stock for $7 per share.
​November 30,2016,purchased 100 shares of his company's stock for $5 per share.
​Does the director have any liability under 16b?

Accepted Answer

Yes,SEC matches the highest sa

Question 7

Which of the following events would be material for purposes of 10b and disclosure?

Accepted Answer

A) a pending merger 
B) not meeting quarterly earnings expectations 
C) product liability lawsuit 
D) a and c only 
E) all of the above 
A) a pending merger 
B) not meeting quarterly earnings expectations 
C) product liability lawsuit 
D) a and c only 
E) all of the above

Question 8

To which of the following will the 10b prohibitions on insider trading apply?

Accepted Answer

A) An officer exercising stock options on the day before the company announces its earnings for the quarter. 
B) An officer exercising stock options on the day before the company reveals an SEC investigation. 
C) An officer exercising stock options on the day before the company announces an earnings reversal. 
D) An officer's son buying stock on the day before the company announces an earnings increase. 
E) All of the above are violations of 10b. 
A) An officer exercising stock options on the day before the company announces its earnings for the quarter. 
B) An officer exercising stock options on the day before the company reveals an SEC investigation. 
C) An officer exercising stock options on the day before the company announces an earnings reversal. 
D) An officer's son buying stock on the day before the company announces an earnings increase. 
E) All of the above are violations of 10b.

Question 9

Which of the following powers does PCAOB $\underline{\text{not}}$ have?​

Accepted Answer

A) ​power to discipline public accounting firms 
B) ​power to prohibit accounting firms from doing audits in the future 
C) PCABO's authority was limited by a U.S.Supreme Court decision 
D) both a and b 
E) none of the above 
A) ​power to discipline public accounting firms 
B) ​power to prohibit accounting firms from doing audits in the future 
C) PCABO's authority was limited by a U.S.Supreme Court decision 
D) both a and b 
E) none of the above

Question 10

State laws regulating tender offers are:

Accepted Answer

A) preempted by the Williams Act. 
B) unconstitutional under the Commerce Clause. 
C) no longer in existence. 
D) none of the above 
A) preempted by the Williams Act. 
B) unconstitutional under the Commerce Clause. 
C) no longer in existence. 
D) none of the above

Question 11

A tombstone ad can be run before the registration statement is effective.

Accepted Answer

A) True 
 B)False

Question 12

A comment or deficiency letter:

Accepted Answer

A) is a denial of registration. 
B) must be issued within 20 days of the filing of the registration statement. 
C) can only be issued once. 
D) all of the above 
A) is a denial of registration. 
B) must be issued within 20 days of the filing of the registration statement. 
C) can only be issued once. 
D) all of the above

Question 13

Asset acquisitions are not subject to any federal regulation.

Accepted Answer

A) True 
 B)False

Question 14

Greg Wanlass is the vice president of talent development for M & T Savings and Thrift,a publicly traded corporation that is listed on the NYSE.Greg has just purchased a home and borrowed the money from M & T,at its regular interest rate.With regard to this loan:​

Accepted Answer

A) ​M & T has violated SOX by making a loan to an officer. 
B) ​the loan is not subject to SOX because it was at M & T's regular interest rate. 
C) the loan is not prohibited by SOX. 
D) M & T is not covered by SOX provisions. 
A) ​M & T has violated SOX by making a loan to an officer. 
B) ​the loan is not subject to SOX because it was at M & T's regular interest rate. 
C) the loan is not prohibited by SOX. 
D) M & T is not covered by SOX provisions.

Question 15

Shares of stock issued pursuant to a corporate reorganization must be registered.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is true of a Rule 504 offering?

Accepted Answer

A) It must be made only to accredited investors. 
B) It is limited to $1 million. 
C) It is limited to 35 purchasers. 
D) all of the above 
A) It must be made only to accredited investors. 
B) It is limited to $1 million. 
C) It is limited to 35 purchasers. 
D) all of the above

Question 17

Venture Capital,Inc.needs to raise $10 million in capital and has been able to obtain the agreements of ten insurance companies to invest $1 million each.If Venture wishes to avoid the cost of full SEC registration,it should:

Accepted Answer

A) simply register under the state blue sky laws. 
B) use a Rule 504 exemption. 
C) use Regulation A. 
D) none of the above 
A) simply register under the state blue sky laws. 
B) use a Rule 504 exemption. 
C) use Regulation A. 
D) none of the above

Question 18

Section 16 applies to all stock transactions of directors and officers (of a 1934 Act company).

Accepted Answer

A) True 
 B)False

Question 19

To qualify for an intrastate offering exemption,the shares must contain transfer restrictions.

Accepted Answer

A) True 
 B)False

Question 20

A 10-K report is the same as the company's annual report.

Accepted Answer

A) True 
 B)False

Section 404 of Sarbanes-Oxley is the section that requires certification of the adequacy of a company's internal controls.

Only directors can be held liable for a Section 11 violation.

A bond is not considered a security under federal law.

Section 10(b)applies to corporate insiders and tippees.

The shareholders of Tennis Man,Inc.have just approved an amendment to their articles of incorporation that requires 75 percent of all shareholders to approve a merger before it can take place.The amendment is an example of:

Which of the following events would be material for purposes of 10b and disclosure?

To which of the following will the 10b prohibitions on insider trading apply?

Which of the following powers does PCAOB $\underline{\text{not}}$ have?

State laws regulating tender offers are:

A tombstone ad can be run before the registration statement is effective.

A comment or deficiency letter:

Asset acquisitions are not subject to any federal regulation.

Greg Wanlass is the vice president of talent development for M & T Savings and Thrift,a publicly traded corporation that is listed on the NYSE.Greg has just purchased a home and borrowed the money from M & T,at its regular interest rate.With regard to this loan:

Shares of stock issued pursuant to a corporate reorganization must be registered.

Which of the following is true of a Rule 504 offering?

Venture Capital,Inc.needs to raise $10 million in capital and has been able to obtain the agreements of ten insurance companies to invest $1 million each.If Venture wishes to avoid the cost of full SEC registration,it should:

Section 16 applies to all stock transactions of directors and officers (of a 1934 Act company).

To qualify for an intrastate offering exemption,the shares must contain transfer restrictions.

A 10-K report is the same as the company's annual report.

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

Section 404 of Sarbanes-Oxley is the section that requires certification of the adequacy of a company's internal controls.

Only directors can be held liable for a Section 11 violation.

A bond is not considered a security under federal law.

Section 10(b)applies to corporate insiders and tippees.

The shareholders of Tennis Man,Inc.have just approved an amendment to their articles of incorporation that requires 75 percent of all shareholders to approve a merger before it can take place.The amendment is an example of:

Which of the following events would be material for purposes of 10b and disclosure?

To which of the following will the 10b prohibitions on insider trading apply?

Which of the following powers does PCAOB not‾\underline{\text{not}}not​ have?​

State laws regulating tender offers are:

A tombstone ad can be run before the registration statement is effective.

A comment or deficiency letter:

Asset acquisitions are not subject to any federal regulation.

Greg Wanlass is the vice president of talent development for M & T Savings and Thrift,a publicly traded corporation that is listed on the NYSE.Greg has just purchased a home and borrowed the money from M & T,at its regular interest rate.With regard to this loan:​

Shares of stock issued pursuant to a corporate reorganization must be registered.

Which of the following is true of a Rule 504 offering?

Venture Capital,Inc.needs to raise $10 million in capital and has been able to obtain the agreements of ten insurance companies to invest $1 million each.If Venture wishes to avoid the cost of full SEC registration,it should:

Section 16 applies to all stock transactions of directors and officers (of a 1934 Act company).

To qualify for an intrastate offering exemption,the shares must contain transfer restrictions.

A 10-K report is the same as the company's annual report.

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 powers does PCAOB $\underline{\text{not}}$ have?

Greg Wanlass is the vice president of talent development for M & T Savings and Thrift,a publicly traded corporation that is listed on the NYSE.Greg has just purchased a home and borrowed the money from M & T,at its regular interest rate.With regard to this loan: