Cross 9e TBB Ch28
Chapter 28
Investor Protection and
Corporate Governance
N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows.
N A question new to this edition of the Test Bank.
+ A question modified from the previous edition of the Test Bank.
= A question included in the previous edition of the Test Bank.
TRUE/FALSE QUESTIONS
1. Securities generally do not include any documents evidencing corporate ownership or debt.
ANSWER: F PAGES: Section 1 TYPE: N BUSPROG: Analytic AICPA: BB-Legal
2. The Securities and Exchange Commission (SEC) requires companies to file certain information electronically so that it can be posted on the SEC’s EDGAR database.
ANSWER: T PAGES: Section 1 TYPE: N BUSPROG: Analytic AICPA: BB-Legal
3. All securities transactions must be registered with the Securities and Exchange Commission—there are no exemptions.
ANSWER: F PAGES: Section 2 TYPE: N BUSPROG: Analytic AICPA: BB-Legal
4. Once a registration statement has been filed, a waiting period begins while the Securities and Exchange Commission reviews the statement.
ANSWER: T PAGES: Section 2 TYPE: N BUSPROG: Analytic AICPA: BB-Legal
5. A well-known seasoned issuer cannot file a registration statement until after it announces a new offering.
ANSWER: F PAGES: Section 2 TYPE: N BUSPROG: Analytic AICPA: BB-Legal
6. Securities offerings in unlimited amounts can be exempt from the registration requirements in certain circumstances.
ANSWER: T PAGES: Section 2 TYPE: = BUSPROG: Analytic AICPA: BB-Legal
7. Most securities can be resold without registration.
ANSWER: T PAGES: Section 2 TYPE: + BUSPROG: Analytic AICPA: BB-Legal
8. Liability can be imposed on those who are negligent in not discovering fraud in connection with a registration statement or prospectus.
ANSWER: T PAGES: Section 2 TYPE: N BUSPROG: Analytic AICPA: BB-Legal
9. The Securities Exchange Act of 1934 applies to companies that have assets in excess of $5 million and
Investor Protection and
Corporate Governance
N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows.
N A question new to this edition of the Test Bank.
+ A question modified from the previous edition of the Test Bank.
= A question included in the previous edition of the Test Bank.
TRUE/FALSE QUESTIONS
1. Securities generally do not include any documents evidencing corporate ownership or debt.
ANSWER: F PAGES: Section 1 TYPE: N BUSPROG: Analytic AICPA: BB-Legal
2. The Securities and Exchange Commission (SEC) requires companies to file certain information electronically so that it can be posted on the SEC’s EDGAR database.
ANSWER: T PAGES: Section 1 TYPE: N BUSPROG: Analytic AICPA: BB-Legal
3. All securities transactions must be registered with the Securities and Exchange Commission—there are no exemptions.
ANSWER: F PAGES: Section 2 TYPE: N BUSPROG: Analytic AICPA: BB-Legal
4. Once a registration statement has been filed, a waiting period begins while the Securities and Exchange Commission reviews the statement.
ANSWER: T PAGES: Section 2 TYPE: N BUSPROG: Analytic AICPA: BB-Legal
5. A well-known seasoned issuer cannot file a registration statement until after it announces a new offering.
ANSWER: F PAGES: Section 2 TYPE: N BUSPROG: Analytic AICPA: BB-Legal
6. Securities offerings in unlimited amounts can be exempt from the registration requirements in certain circumstances.
ANSWER: T PAGES: Section 2 TYPE: = BUSPROG: Analytic AICPA: BB-Legal
7. Most securities can be resold without registration.
ANSWER: T PAGES: Section 2 TYPE: + BUSPROG: Analytic AICPA: BB-Legal
8. Liability can be imposed on those who are negligent in not discovering fraud in connection with a registration statement or prospectus.
ANSWER: T PAGES: Section 2 TYPE: N BUSPROG: Analytic AICPA: BB-Legal
9. The Securities Exchange Act of 1934 applies to companies that have assets in excess of $5 million and