The Legal Environment of Business: Text and Cases (MindTap Course List)
10th Edition
ISBN: 9781305967304
Author: Frank B. Cross, Roger LeRoy Miller
Publisher: Cengage Learning
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Chapter 28, Problem 1BS
Summary Introduction
Case s ummary: A company EHI is incorporated and is doing its business in Florida. The company decided to sell common stock of
To f ind: Person whose offer is valid in accordance with the law.
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1. Exempt from the registration requirement of the Securities Act of 1933 are offerings of securities
a. made to a small number of knowledgeable investors.
b. issued by for-profit organizations.
c. involving a large dollar amount.
d. only for large organizations that are for-profit.
2. Global Investments is a foreign investor. With respect to the operations of a limited liability company in the United States, Global can
a.not become a member but can participate.
b. become a member and participate.c. not become a member or participate.
d. Become a member but cannot otherwise participate.
3. Quorum requirements include _________
a. number of decision-makers that must be present before business can be conducted.
b. how often decision-makers must meet each year.
c. maximum number of shareholders allowed in for-profit companies.
d. all other answer choices
4. Fiduciary duties of the directors and officers include
a.duty of care
b. duty of loyalty
c.…
Briefly explain the liability of:(a) A director of a private limited liability company.(b) A partner of a partnership.(c) A sole trader.(d) A private limited company.
Considering the following statements true or false.
1.Circumstances whereby the CFA member breaches client confidentiality are acceptable in circumstances directed by the client in writing.
2.Mosaic theory damages the interest of all investors by disrupting the smooth functioning of forward markets and lowering investor confidence.
3.As a philosophical ethical principle, when analysing actions undertaken, it is acceptable that an act can be seen as good or bad regardless of the underlying/relevant circumstances.
4.As part of Standard IV, as a superior, it is not your responsibility to ensure ethical behaviour of your subordinates.
5.Premium investment services should be designed in such a way that, while beneficial to those who are in a position to take advantage of them, they are not unfairly disadvantages to other classes of clients.
Chapter 28 Solutions
The Legal Environment of Business: Text and Cases (MindTap Course List)
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