Reference no: EM132163483
1. Which of the following transactions of sale of securities would be exempt from the registration requirement?
Transactions made by an issuer.
Transactions made by an underwriter.
Offerings of small business investment companies not made in accordance with rules and regulations of the Securities and Exchange Commission.
Private offerings to a limited number of people who do not propose to redistribute their securities.
Securities of municipal, state, federal and other government instrumentalities, of charitable institutions, of banks, and of carriers not subject to the Interstate Commerce Act.
2. Foreign corporations are required to obtain from the secretary of the state a(n) _____ to conduct business.
memorandum of association
certificate of authority
article of incorporation
no-objection certificate
notice of existence
3. If one company acquires 90 percent or more of the stock of another company, it can merge with the target company without the consent of the target company's shareholders. The resultant merger is known as the _____ merger
ademption
runaway shop
codicil
short-form
closed shop
4. In order to completely acquire Write Well Inc., Delta Inc. paid the shareholders of Write Well Inc. money in exchange for their shares. This is an example of a _____.
freeze-out merger
non cash merger
horizontal divestiture
leveraged buyout
vertical divestiture
5. Successor's liability has the least adverse effect on a(n) ____.
cash merger
takeover
consolidation
asset purchase
noncash merger
6. Which of the following expansion strategies results in the formation of an entity that is an entirely new corporation?
A cash merger
A takeover
A consolidation
An asset purchase
A noncash merger
7. A horizontal restraint of trade differs from a vertical restraint of trade in that the horizontal restraint of trade:
follows the rules listed in the Robinson-Patman Act of 1936.
follows the rules listed in the Clayton Antitrust Act of 1914.
limits the competition between rival firms in the same industry.
limits the competition between a government producer and a private retailer.
follows the rules stated in the Sherman Antitrust Act of 1980.
8. B&T Inc. sells exclusively to Humdingers in North Dakota, and T&Y Inc. sells both to Humdingers and several other wholesalers. If T&Y Inc. cuts its prices to Humdingers while charging higher prices to the other wholesalers, B&T Inc. experiences an adverse effect. This adverse effect is an example of a(n)_____.
product diversification injury
primary-line injury
product differentiation injury
product disparagement injury
good-faith injury
9. Cake-a-licious, a large bakery business, purchased a wheat farm in order to reduce the risk associated with its dependency on flour. This is an example of _____.
right horizontal integration
left horizontal integration
backward vertical integration
forward vertical integration
an abatement violation