The Basic Types of Transaction Exemptions from Registration with the SEC

question 17

Multiple Choice

The basic types of transaction exemptions from registration with the SEC are:

• A)the private offering exemption and the accredited investor exemption
• B)the "too-big-to-fail" exemption and the intrastate offering exemption
• C)the accredited investor exemption and the public offering exemption
• D)the intrastate offering exemption and the interstate offering exemption

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Definitions:

Business Operations

Activities involved in the day-to-day functions of a business related to producing and delivering products or services.

Unlimited Liability

A legal structure in which owners are personally and fully responsible for all debts and liabilities incurred by the business.

Personal Assets

Assets owned by an individual as opposed to those owned by businesses or governments, including tangible and intangible items.

Original Capital Investment

The initial sum of money used to start a business or investment, often used for assets, inventory, and other startup costs.