John Diaz Immigrated to Tallahassee from Cuba in the 1980s

question 104

Multiple Choice

John Diaz immigrated to Tallahassee from Cuba in the 1980s.He set up a coffee shop called Diaz in a small upper-middle-class neighborhood.It rapidly became popular because of the wonderful coffee it brewed.Soon Diaz was selling the finest coffees from around the world,plus coffee-making necessities such as grinders and brewers.Within ten years,Diaz was operating a lucrative mail-order business in addition to his coffee shop.
Upon entering the shop,the first thing the customer sees is a countertop crowded with all of the machinery needed for making a perfect cup of coffee.Marble-topped tables are set in cozy nooks with overstuffed chairs.Bookshelves on one wall hold books about coffee for patrons to read while they sip.The smell is intoxicating to a real coffee lover.Coffee drinkers can take home a pound when they leave.The store carries all types of coffee from $300 per pound Kopi Luwak from Sumatra to Brazilian Cerrado for $8 a pound.
-Refer to Diaz.In terms of ownership,Diaz's coffee shop would be classified as a(n) :

• A) franchise
• B) wholesaler
• C) independent retail operation
• D) agency
• E) chain store

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Definitions:

SEC Rule 415

Known as "shelf registration," this SEC rule allows companies to register a new issue of securities without selling the entire issue at once.

Shelf Registration

A regulatory provision that allows an issuer to register a new issue of securities without selling the entire issue at once, facilitating future sales.

Initial Registration

The process through which a company files necessary documents with the Securities and Exchange Commission (SEC) for its securities to be offered to the public for the first time.

Margin Call

A demand by a broker for an investor to deposit additional funds or securities to maintain the required minimum margin account balance.