What Is Meant by Rational Basis

question 4

Multiple Choice

What is meant by rational basis?

• A)A decision has the consent of all board members.
• B)A decision has been taken after protracted negotiations.
• C)A decision has a logical connection to the facts.
• D)A decision has been taken after a long discussion.

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Definitions:

Material Misstatements

False or inaccurate statements that are significant enough to impact an investor's or decision-maker's judgment.

SEC Rule 504

SEC Rule 504 of Regulation D allows certain small businesses to offer and sell up to $5 million of their securities in any 12-month period without having to register the securities with the SEC.

Federal Securities Regulation

Federal securities regulation consists of U.S. laws and rules that regulate the creation, registration, purchase, and sale of securities, aimed at protecting investors and ensuring market integrity.

Interstate Commerce

Refers to trade, traffic, or transportation involving the movement of goods, services, money, or persons from one state to another, regulated by the federal government.