Reference no: EM132159204

1. Which of the following is a feature of the Securities Exchange Act of 1934 but not the Act of 1933?

a. The 1934 Act requires periodic disclosure by issuers with publicly held equity securities.

b. It has registration provisions for issuance of securities.

c. The 1934 Act requires additional information in the registration statement.

d. It has several sections prohibiting fraud in securities transactions.

2. A manager who first offers an opportunity to disinterested directors or shareholders who turn it down has the right to take advantage of the opportunity herself.

True

False

3. Jason, Ellen and Frank are business partners. Each of them handles a separate area of the partnership's business. They periodically have partners' meeting where they report to each other on the financial status of their areas and discuss potential new business. Jason's area of business has recently become extremely profitable, and Ellen and Frank are so happy with the new financials that they have not closely questioned Jason about the details especially since the partners continue to receive an equal share of the business profits each of them brings in. Ellen and Frank are shocked when the FBI comes to the office one Friday afternoon and arrest Jason. The FBI also informs Ellen and Frank that the office equipment is being seized and the partnership bank accounts have been frozen. Which of the following is a correct statement of the law?

a. Both Ellen and Frank can face criminal prosecution because the business was operated as a partnership.

b. Ellen and Frank will not be liable for Frank's conduct because Frank independently operated his area of the business.

c. Ellen and Frank should immediately file a Notice of Dissociation so that they will not be liable for Jason's conduct.

d. By not closely questioning Jason about his area of the business, Ellen and Frank will be seen to have ratified Jason's partnership operations.

4. Title VII of the Civil Rights Act of 1964 precludes discrimination against which of the following persons:

a. persons with physical disabilities

b. women

c. persons who were not born in the USA

d. gey and lesbian persons

5. Under the revised MBCA, if there are business debts following a defective incorporation, liability for the debts will be imposed on which of the following?

a. Promoters who knew of the defective incorporation.

b. Shareholders who acted as if a corporation had been formed.

c. Shareholders who participated in management and policy decisions and knew of the defective incorporation.

d. Managers who participated in decision-making while the corporation was operating.