According to the 'Indoor Management Rule' a Person Dealing with a Company

question 15

Multiple Choice

According to the 'indoor management rule' a person dealing with a company in good faith:

• A)need never be concerned about whether or not the company is complying with its constitution.
• B)should assume that persons acting on behalf of the company are not acting in accordance with the rules of its constitution unless the contrary is proven.
• C)can generally assume that persons acting on behalf of the company are acting according to the rules of its constitution.
• D)cannot legally contract with a person who does not have authority to contract with them under the rules of their company's constitution.

Plan for long-term financial goals, including retirement and bequests, using financial calculations.

Compare and contrast taxable and tax-exempt investment options.

Identify strategies to maximize employer contributions in retirement plans.

Understand the concept of moral hazard in the context of government insurance for banks.

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Definitions:

Initial Public Offering (IPO)

The process by which a private company offers its shares to the public for the first time, becoming a publicly traded company.

Underwriters

Professionals or entities that evaluate and assume the risk of another party, often in the context of issuing insurance policies or underwriting securities in financial markets.

Offer Price

The price at which an asset or service is offered for sale to potential buyers.

Ex-Rights Price

The ex-rights price is the stock price after the rights to purchase additional shares at a discount have been separated from the stock.