If No Exemption Is Available, a Corporation Offering Shares of Stock

question 67

True/False

If no exemption is available, a corporation offering shares of stock for sale is subject to court injunction and civil liability in damages to persons to whom securities are sold in violation of the regulatory statute, but there is no potential criminal liability.

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Definitions:

Statement Of Financial Position

Another term for the balance sheet, showing a company's assets, liabilities, and shareholders' equity at a specific point in time.

Order Of Decreasing Liquidity

A ranking of assets on a balance sheet based on their ease of conversion to cash without loss of value.

Order Of Importance

A principle of organization where information is prioritized and arranged according to its significance.