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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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Super Grocery store allocates its service department expenses to its various operating (sales) departments. The following data i
Kruka [31]

Answer:

6,000

Explanation:

The computation of the total administrative expense allocated to the Meats department is shown below:

= (Total administrative expenses ÷ total square feet) × meat square feet

= ($15,000 ÷ 3,000) × 1,200

= 6,000

We simply do the proportion based on the meats department by dividing the total square feet

All other information which is given in the question is not considered. Hence, ignored it

8 0
3 years ago
Which of the following is taken into account when measuring the performance of a nation's economy? (Select all that apply.)
tresset_1 [31]
GDP I think is the correct answer
4 0
2 years ago
A ______ tax structure applies the same tax rate to all levels of income, while a ______ tax structure applies higher tax rates
valina [46]

1. <u>Proportional taxation</u> applies where the same tax rate is used no matter the level of income.

2. A <u>progressive tax structure</u> uses higher tax rates with increases in the tax base.

3. A <u>regressive tax structure</u> applies lower tax rates despite increases in the tax base.

<h3>The differences between the tax structures</h3>

The implication of the above explanations is that a progressive tax system takes a larger percentage of income from high-income groups than from low-income groups. A proportional tax system takes the same percentage of income from all income groups, while a regressive tax structure operates from the opposite angle, taking a larger percentage of income from low-income groups than from high-income groups.

Thus, one of these three tax structures may be prevalent in some countries of the world.

Learn more about the progressive, proportional, and regressive tax structures here: brainly.com/question/13701600

3 0
2 years ago
Retiring comfortably is most likely a long-term goal for a person of which of
Nadusha1986 [10]

Answer:18 years old

Explanation:

8 0
2 years ago
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Suppose Clampett, Inc., terminated its S election on August 28, 2019. At the end of the S corporation's short tax year ending on
NISA [10]

Answer:

$5,000

Explanation:

Since Suppose Clampett, Inc., terminated its S election on August 28, 2019, it implies that the ending date for post transition termination period is September 15, 2019. This date is the extended due dat for S corporation to file final tax return.

As J.D. made additional capital contributions of $5,350 on March 15 and $13,050 on September 20, only the $5,350 contribution made on March 15 falls within the post transition termination period of September 15, while the $13,050 contribution made on September 20 falls outside the post transition termination period.

Therefore, J.D. May only deduct $5,000 in 2020.

8 0
3 years ago
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