A Possible Way to Save the Expenses of Registering a New

question 81

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 401k exemption
• D) a blue sky exemption
• E) none of the other choices

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Definitions:

Duty of Diligence

An obligation to exercise reasonable care and diligence in the performance of obligations, typically referring to the conduct expected of directors, officers, and professionals.

Conflict of Interest

A situation where an individual's personal interests could interfere with their professional duties or responsibilities.

RMBCA

The Revised Model Business Corporation Act, which provides a model framework for the governance of corporations, intended to standardize corporate law across jurisdictions.

Board of Directors

A group of individuals elected by shareholders to oversee the management and make key decisions for a corporation.