Space Flight Inc

question 24

Multiple Choice

Space Flight Inc. files a registration statement with the SEC before making an offering to the general public. The registration contains false, immaterial statements of which the investors are unaware. The firm is charged with violating the Securities Act of 1933. Its best defense is

• A)the investors were not aware of the misrepresentations.
• B)the issuer reasonably believed the misstatements were true.
• C)the offering was made available to the general public.
• D)the untrue statements were not material.

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Definitions:

Capital

A financial asset or the value of financial assets owned by a business or individual, including cash, investments, and property.

Wrongful Discharge

The illegal termination of an employee's contract or employment against the terms of the contract or under laws protecting employees.

Progressive Discipline

A step-by-step approach used by employers to address employee performance problems or misconduct, increasing in severity if the issues persist.

Employee Handbook

A manual or document that communicates a company's policies, expectations, and procedures to its employees.