The Original Howey Test Required That the Investor Have No

question 52

True/False

The original Howey test required that the investor have no involvement with generating profits; however,the modern trend is for courts to permit a limited passive involvement on the part of the investor.

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Definitions:

Prolonged

Continuing for a long time or longer than usual.

Highly Political

Describes environments or situations where power dynamics, influence, and strategic maneuvers play a significant role in decision-making and outcomes.

Compatible Interests

Interests or hobbies that align well between individuals or groups, facilitating cooperation or shared enjoyment.

Ecotourism

A form of sustainable travel to natural areas that conserves the environment and improves the well-being of local people.