Which of the Following Must Occur in Order for the Exemption

question 56

Multiple Choice

Which of the following must occur in order for the exemption involving intrastate issues to apply?

• A)Issuers must do at least 80 percent of their business within the state.
• B)Issuers must have at least 80 percent of their assets within the state.
• C)Issuers must plan to use at least 80 percent of the profits within the state.
• D)Issuers must have their main offices in the state.
• E)All of these.

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Definitions:

Cash Flows

The total amount of money being transferred into and out of a business, indicating its financial health.

Project

A planned endeavor, typically involving research or design, that is carefully planned to achieve a particular aim.

PI

A mathematical constant approximately equal to 3.14159, representing the ratio of a circle's circumference to its diameter; if the context is finance, PI could refer to Profitability Index, indicating the ratio of payoff to investment for a project.

Profitability Index

A financial tool that calculates the relationship between the costs and benefits of a project by dividing the present value of future cash flows by the initial investment.