Private Offerings

question 51

Multiple Choice

Private offerings:

• A) must comply with Regulation D.
• B) involve more time and expense than public offerings.
• C) do not involve the SEC.
• D) are not a viable option for new ventures.

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Definitions:

Cash-Flow Contingency

A provision or reserve for potential changes in cash flow due to uncertain future events that might affect a company's financial health.

Market-Price Contingency

A condition in a contract that the transaction's completion or the specifics of the transaction terms depend on future market prices.

Consolidated Balance Sheet

A financial statement that aggregates the assets, liabilities, and equity of a parent company and its subsidiaries into one document for a clear view of the total business.

Contingent Consideration

An obligation of an acquiring entity to transfer additional assets or equity interests if future events occur or conditions are met, following an acquisition.