Which of the Following Represents the General Rule Under Rule

question 8

Multiple Choice

Which of the following represents the general rule under rule 10b-5 in regard to the duty of a company to reveal corporate developments?

• A) A company has no general duty under Rule 10b-5 to reveal corporate developments unless the company or its insiders (1) trade in securities or (2) recommend trading to someone else.
• B) A company has no general duty under Rule 10b-5 to reveal corporate developments unless the company or its insiders (1) trade in securities, (2) recommend trading to someone else, or (3) disclose the information as a tip while withholding it from the general public.
• C) A company has a general duty under Rule 10b-5 to reveal corporate developments that are material.
• D) A company had a general duty under Rule 10b-5 to reveal corporate developments if it appears (1) that developments are material and (2) that the material developments will have a negative effect on the company's financial reports.

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Definitions:

Strategic Business Unit Level

A part of an organization treated as a separate profit center with its distinct strategy, resources, and objectives.

CMO

Chief Marketing Officer, a corporate executive responsible for marketing activities in an organization.

Strategic Business Unit Level

A segment of a larger corporation that operates as an independent entity, focusing on a specific market or product.

Target Customers

Specific groups of consumers identified as the intended recipients of a marketing campaign or the primary users of a product or service.