Which Exemption to Registration Requirements Exempts Offerings of Less Than

question 10

Multiple Choice

Which exemption to registration requirements exempts offerings of less than $5 million to no more than 35 nonaccredited purchasers over a 12-month period?

• A) Rule 504 exemption
• B) Rule 505 exemption
• C) Rule 506 exemption
• D) Rule 507 exemption

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Definitions:

Spontaneous Financing

Financing that arises naturally from the normal operation of a business, such as trade credit from suppliers.

Seasonal Working Capital

Additional funds a business may need at certain times of the year to manage increased operational activities.

Clean-Up Requirements

Environmental or legal directives that mandate the remediation of pollution or contaminants from a site.

Compensating Balance

A minimum account balance that a borrower is required to maintain with a lender, which can reduce the effective amount of loan available to the borrower.