Fleet Trucking Corporation Is a Public Company with a Market

question 20

Multiple Choice

Fleet Trucking Corporation is a public company with a market capitalization of less than $75 million. Fleet is poised to issue securities in a transaction that, under the Securities Act of 1933, is exempt. This enables Fleet to

• A)reduce the compliance costs by not requiring an auditor report.
• B)buy and sell the securities without liability for recaptured profit.
• C)make forward-looking financial forecasts without liability.
• D)withhold inside information from accredited investors.

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Definitions:

Nonexcludable

A property of a good where it is not possible to prevent individuals from consuming the good, regardless of whether they have paid for it.

Clean Water

Water that is free from pollutants and contaminants, making it safe for human consumption and use.

Private Good

A type of good that is both excludable and rival in consumption, meaning its use is limited to paying customers and one person's use diminishes another person's ability to use it.

Automobile

A wheeled motor vehicle used for transportation, typically powered by an internal combustion engine or electric motor.