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Shtirlitz [24]
3 years ago
8

A wealthy customer has been asked by his neighbor to invest in the private placement of a "start-up" technology company as a ven

ture capital investor. This is the first time that the customer has considered such an investment. The customer contacts his registered representative and asks: "Aside from the investment risk associated with a "start-up" company, what are the other issues that I should consider before making such an investment." The registered representative should inform the customer that:
Business
1 answer:
Ivanshal [37]3 years ago
6 0

Options:

I because these securities are not registered with the SEC, such an offering would be illegal in the United States

II because the securities are not registered with the SEC, they can only be resold in the public markets if the company effects a registered primary distribution and is current in its SEC filings

III public resale of these securities can only occur if the customer holds the securities for 6 months "at risk" and then sells the securities in measured quantities

IV these securities can only be resold by the customer to underwriters that will buy the securities into their inventory and then register them with the SEC

Answer:

II because the securities are not registered with the SEC, they can only be resold in the public markets if the company effects a registered primary distribution and is current in its SEC filings

III public resale of these securities can only occur if the customer holds the securities for 6 months "at risk" and then sells the securities in measured quantities

Explanation:

Option I is wrong because this type of operations is completely legal, and they are called private placements.

Option IV is also wrong because the underwriters do not register the stocks with the SEC, the company must be public in order for it to be registered  and their stocks publicly traded.

Option II is correct because you can privately resell the stocks, but the market is very limited.

Option III is correct because if the company does turn public, then the investor must hold the stocks for 6 months "at risk" (no puts purchased) before being able to sell them on public markets.

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Romashka-Z-Leto [24]

Its gross profit could be identical to its net revenue. There might not be a cost of goods sold in a service business. There is no distinction between net revenue and gross profit in this instance.

<h3>What are businesses?</h3>
  • The practice of earning a living or generating revenue via the production, acquisition, and sale of items is known as business (such as goods and services).
  • Additionally, it includes "any activity or enterprise undertaken for profit."
  • The owner of the business is responsible and liable for any obligations made by the business since the business entity is not legally distinguished from the owner by the use of a business name.
  • If a firm accrues debt, creditors may seize the owner's personal property.
  • Corporate tax rates are not permitted in a firm structure.
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<h3>What is Management?</h3>
  • Management (or managing) is the process of overseeing the operations of a company, nonprofit, or governmental entity.
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Learn more about businesses here:

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8 0
1 year ago
A company has beginning inventory of 10 units at a cost of $10 each on February 1. On February 3, it purchases 20 units at $12 e
Gre4nikov [31]

Answer:

b) $124

Explanation:

FIFO means first in, first out. Under this principle, goods that were purchased or produced earlier will be the first ones on sale.

The value of the goods sold in our case will be as follows.

The first ten items   @ $10: 10X10 =$100

Two items to make   [email protected] $12: 2x12=$24

 

Total cost: $100+$24= $124

7 0
3 years ago
Which factor makes a currency more attractive to investors
Anna007 [38]
The correct answer is B. A low inflation rate! I hope this helps you!
3 0
2 years ago
Read 2 more answers
Lancashire Railway Company (LRC) has two divisions, L and H. Division L is the company’s low-risk division and would have a weig
Aleks [24]

Answer:

Lancashire Railway Company (LRC)

Lancashire Railway Company (LRC) should reject the project.  The basis for rejecting Division H's project is that its return (12%) is less than the risk-based cost of capital for the division (14%).

Explanation:

a) Data:

Division L's weighted-average cost of capital = 8%

Division H's weighted-average cost of capital = 14%

Weight of Division L = 50%

Weight of Division H = 50%

Company composite weighted average cost of capital = 11% (8% * 50%) + (14% * 50%)

Expected return from a proposed project for Division H = 12%

4 0
2 years ago
In 2007, Gillette saw an opportunity to capture the market of 500 million Indians who used double edge razors with no protection
rusak2 [61]

Answer:

Gillette in India

The failure of the Vector was caused by the fact that Indian men have longer and thicker hair, which the lack of earlier research in the targeted demographic segment did not discover.

Explanation:

Since Indian men have longer and thicker hair than the local consumers of Gillette's razor products in America, an earlier research would have uncovered the fact.  Thereafter, the discovery would have been incorporated into the design and production of Vector for the Indian market. No wonder, with its Mach 3 Turbo razor, Gillette overcame its initial inertia and handicap and made a success of the razor business in India.

5 0
2 years ago
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