Kirndeep Recently Received a Bachelor of Business Administration

question 47

Multiple Choice

Kirndeep recently received a Bachelor of Business Administration. She has, however, always dreamed of representing people with legal problems. She has come to you for advice and guidance regarding the various possibilities. Which of the following statements is TRUE?

• A) Lawyers always make more money than paralegals.
• B) Before starting a private practice, a paralegal is required to complete a period of articles with a law firm.
• C) Paralegals are allowed to represent clients in small claims courts.
• D) Paralegals are more heavily regulated than lawyers.
• E) Paralegals are permitted to help clients draft legal documents, but they are never entitled to appear in courts or tribunals.

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Definitions:

Green Shoe Option

A clause in an IPO that allows underwriters to buy and sell additional shares than originally planned, stabilizing the stock price.

Underpricing Effect

The phenomenon where new stock offerings are priced below their market value, often leading to an immediate increase in their price upon trading.

Market Price

The prevailing transaction price for an asset or service.

Securities

Securities are financial instruments that represent an ownership position in a publicly-traded corporation (stock), a creditor relationship with a governmental body or a corporation (bond), or rights to ownership as represented by an option.