While Section 42) Does Not Limit the Dollar Amount of an Offering

question 1

Multiple Choice

While Section 42) does not limit the dollar amount of an offering, the interpretation of the law has stipulated that:

• A) the investors must be sophisticated
• B) the number of investors must be limited to 35
• C) the funds must be raised within a 12-month period
• D) the offering must be extended to the public, and not only investors who have a relationship with the issuer

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Definitions:

Disjunctive Syllogism

A type of deductive argument by elimination in which the premises present only two alternatives.

Deductive Arguments

A logical process where the conclusion is based on the concordance of multiple premises that are generally assumed to be true.

Valid

A term used in logic to describe an argument where if the premises are true, the conclusion must also be true.

Premises

Buildings and land owned or occupied by a person or company, often referred to in legal and business contexts.