Corporations Use the Shelf Registration Method of Security Sales Because

question 38

Multiple Choice

Corporations use the shelf registration method of security sales because:

• A)preregistered security can be quickly brought to market.
• B)the main registration process is eliminated for up to two years.
• C)their stock is below investment grade.
• D)Both A and B.
• E)Both B and C.

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Definitions:

Limited Partners

Limited partners are investors in a partnership with limited liability to the debts of the partnership, and whose involvement in management is restricted by law.

General Partner

An owner of a partnership who has unlimited personal liability for the debts and obligations of the partnership.

Limited Liability Limited Partnership

A form of partnership that offers limited liability to some partners (limited partners) and allows others (general partners) to operate the partnership with limited liability as well.

General Partners

Individuals in a partnership who are responsible for managing the business and are personally liable for its debts.