[Vineyard Development] a Community Group in Montana Wanted to Revitalize

question 35

Multiple Choice

[Vineyard Development] A community group in Montana wanted to revitalize the area and held a meeting urging residents to invest in local businesses. After the meeting, Mai and Trent, who own Valley Vineyard, decide to expand by adding a spa and first-class restaurant to the property to attract tourists. They plan to raise capital for the vineyard development by issuing securities to local investors. All of Valley Vineyard's property and assets are in Montana and their wine sales are about 85% to stores, consumers, or distributors within the state. Once the spa and restaurant are running, they would like to use their profits to open a small wine-bar in Florida.
-Under the Private Securities Litigation Reform Act of 1995, publicly held issuers of publicly held securities cannot be held liable when actual corporate earnings fall short of forecasted earnings as long as ________.

• A) the forecasts are made in good faith.
• B) the forecasts are accompanied by meaningful cautionary statements.
• C) the forecasts are filed with the SEC.
• D) the forecasts are fully disclosed to the public and reasonable in scope.
• E) the forecasts had been verified by an independent public accountant.

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Definitions:

O

O, also known as Oxygen, is a chemical element with symbol O and atomic number 8, essential for respiration in many living organisms.

S

Sulfur, a yellow, odorless, brittle nonmetallic element used in making sulfuric acid, matches, and fertilizers.

Lewis Dot Structures

Diagrams that show the bonding between atoms of a molecule and the lone pairs of electrons that may exist.

Valence Electrons

The electrons in the outer shell of an atom that are available for forming bonds with other atoms.