When Property Rights Are Assigned and Transactions Costs Are Low

question 252

Multiple Choice

When property rights are assigned and transactions costs are low

• A) all costs and benefits are taken into account by the transacting parties so the transaction is efficient.
• B) externalities will lead to market failure.
• C) the marginal social benefit curve shifts leftward.
• D) the marginal social cost curve shifts rightward.

Understand the process and regulations surrounding the private placement of securities.

Identify the primary focuses of major regulatory acts affecting securities, including the Sarbanes-Oxley Act.

Define the roles and attributes of sophisticated investors in the securities market.

Learn the requirements for maintaining accounting records and internal controls according to different acts.