A Possible Way to Save the Expenses of Registering a New

question 178

Multiple Choice

A possible way to save the expenses of registering a new security offering is to keep a security exempt from registration. One of these exemptions is called:

• A) a shelf registration exemption
• B) a risky venture exemption
• C) a private placement exemption
• D) a blue sky exemption
• E) none of the other choices

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Definitions:

Guaranteed Residual Value

The predetermined value of a leased asset at the end of the lease term, which the lessee may have to pay or receive depending on the lease agreement.

Implicit Interest Rate

The interest rate embedded in a lease or loan agreement, discernible through the payment terms but not explicitly stated.

Lease Receivable

The amount of money owed to a lessor under the terms of a lease agreement for the use of an asset.

Direct Financing Lease

A type of lease where the lessor purchases an asset and leases it out, effectively financing its purchase for the lessee, recognizing interest income over the lease term.