Section 20(a)imposes __________ Liability on Every Person Who,directly or Indirectly,controls

question 26

Multiple Choice

Section 20(a) imposes __________ liability on every person who,directly or indirectly,controls any person liable under the 1934 Act,unless the controlling person acted in good faith and did not directly or indirectly induce the acts constituting the violation.

• A) strict
• B) individual
• C) joint and several
• D) criminal

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Definitions:

Economic Life

The period over which an asset is expected to be productive or provide economic benefits.

Operating Lease

A lease agreement allowing a company to use an asset without ownership, with lease payments expensed as incurred.

Capital Leases

A lease agreement that grants the lessee almost all the risks and benefits of ownership of the asset leased.

Financial Lease

A long-term lease agreement where the lessee assumes the risks and rewards of ownership, often with the option to purchase the asset at the end of the lease term.