Which of the Following Is a Requirement of Natural Persons

question 42

Multiple Choice

Which of the following is a requirement of natural persons to be accredited investors under Rule 501 of Regulation D?

• A)net worth greater than $5 million
• B)total assets greater than $1 million
• C)individual (single)annual income greater than $200,000
• D)stock market portfolio greater than $2 million

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Definitions:

Borrowing Rate

The interest rate charged by a lender to a borrower for the use of borrowed money, often expressed as an annual percentage.

ROA

Return on Assets, an indicator of how profitable a company is relative to its total assets, showing how efficient management is at using assets to generate earnings.

ROE

Return on Equity: It's a financial performance indicator that is computed by dividing the net income by the equity held by shareholders.

Equity/Debt Ratio

An economic indicator revealing the balance between shareholder equity and borrowed funds in financing company assets.