Part 2 Flashcards
The chief executive officers of the major U.S. steel makers would most likely be prosecuted under the antitrust laws if they…
a) met to review developments in the domestic market for steel
b) agreed to work together to control the price of domestic steel
c) conferred on resources, supply, and distribution issues
d) promised to reveal each other their positions on trade and tariffs.
b) agreed to work together to control the price of domestic steel
Antitrust legislation is based on society’s desire to
a) increase prices
b) foster competition
c) consolidate market power
b) foster competition
The goal of securities regulation is to…
a) contribute to the operations of national security exchanges
b) prohibit deceptive and manipulative practices in the securities markets.
c) prescribe ways and means for investors to fairly break the rules
b) prohibit deceptive and manipulative practices in the securities markets.
Under the Securities Act of 1993, securities include…
a) any instrument representing corporate ownership or debt
b) a common enterprise reasonably expected to make a profit
c) an investment in one’s own personal entrepreneurial effort
d) whatever a corporation represents to the public as profitable
a) any instrument representing corporate ownership or debt
Fabrication Corporation is a public company whose shares are traded in the public securities markets. Under the Securities Act of 1993, Fabrication is required to…
a) disclose all essential information about the insurance of its securities
b) contribute to the operations of national security exchanges
c) engage in market surveillance to deter undesirable practices
d) meet investors’ reasonable expectations to make a profit.
a) disclose all essential information about the insurance of its securities
United Delivery Corporation is a public company whose shares are traded in the public securities markets. Under the Securities Act of 1993, United Delivery is required to…
a) buy or sell its securities only on a national security exchange
b) register its securities transactions unless they qualify for an exemption.
c) invests in own managerial or entrepreneurial efforts
d) issues instruments representing corporate ownership or debt.
B0 register its securities transactions unless they qualify for an exemption
Market Data Corporation is required to file a registration statement with the Securities and Exchange Commission. This statement must contain…
a) a copy of prospectuses to be provided to investors
b) a description of securities being offered for sale
c) a record of pre-registration sales in securities
d) a statement that securities being offered for sale are worth the price.
b) a description of securities being offered for sale
Luan, a programmer for Monetized Nation Inc. a business modeling service, learns of undisclosed company plans to dispute a new app. Luan reveals the company plans to a friend, Ono, who buys 5000 shares of the firm’s stock. Under the Securities Exchange Act of 1934, One is most likely…
a) liable for inside trading
b) not liable bc Ono does not work for them
a) liable for inside trading
Bev is the chief executive officer of Chef Cafes Inc. which is required to file certain financial reports with the Securities and Exchange Commission. Under the Sarbanes-Oxley Act of 2002, Bev must…
a) certify that the reports are complete and accurate
b) designate a corporate official to assume liability for inaccuracies
c) do nothing
a) certify that the reports are complete and accurate.
Delta Water Company is subject to a decision by the Environment Protection Agency. Delta appeals the decision, arguing that it is arbitrary and capricious. This could mean that the decision…
a) changed the agency’s prior policy without justification
b) followed a consideration of all legally appropriate factors
c) was accompanied by a rational explanation
a) changed the agency’s prior policy without justification
The procedures used by administrative agencies in fulfilling their basic functions are known as…
a) the procedural process
b) the legislative process
c) the administrative process
d) the executive process
c) the administrative process
The Securities and Exchange Commission decided to create a new rule relating to the dissemination of material nonpublic information through social media. The first step is…
a) compile the rule with others in the Code of Federal Regulations
b) draft the rule
c) publish a notice of the proposed rule making
c) publish a notice of the proposed rulemaking
Notice-and-comment rulemaking involves a period during which…
a) judges, legislators, and the president are asked about a proposed rule
b) potential violators of a proposed rule are notified and publicized
c) the administrators “notice” a problem and “comment” on it.
d) the public is asked to comment on a proposed rule
d) the public is asked to comment on a proposed rule
A statute enacted by Congress authorizes…
a) enabling legislation
b) Executive orders issued by the president
c) court decisions issued by federal judges
a) enabling legislation
An administrative agency rule that carries the same weight as a congressionally enacted statute…
a) delegation of authority
b) rulemaking authority
c) administrative discretion
d) legislative rule
Legislative rule
