Which of the Following Is True Regarding Whether the "Common

question 53

Multiple Choice

Which of the following is true regarding whether the "common enterprise" element of the SEC v.W.J.Howey Co.case requires horizontal or vertical commonality?

• A) The federal circuits are in agreement that there must be horizontal commonality even if vertical commonality can be shown.
• B) The federal circuits are in agreement that there must be vertical commonality even if horizontal commonality can be shown.
• C) There is a split in the federal circuits as to whether the common enterprise element of the test can be met by showing horizontal commonality or whether there must be vertical commonality.
• D) There is a split in the federal circuits as to whether the common enterprise element of the test can be met by showing vertical commonality or whether there must be horizontal commonality.

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Definitions:

Collection Float

The time period between when a check is deposited and when the funds are made available.

Chequing Account

A bank account from which money can be withdrawn without notice, typically used for day-to-day spending and bill payments.

Deposit

A deposit refers to a sum of money placed into an account or given to another party as security for future transactions, often used in banking, leasing, and rental agreements.

Incremental Pre-tax Profits

Profits generated from a specific event or decision, calculated before taxes are deducted.