The Maximum Amount of Securities a Company Can Issue in a 12-Month

question 17

Multiple Choice

The maximum amount of securities a company can issue in a 12-month period through crowdfunding is:

• A)$50,000.
• B)$50,000 the first year and up to $100,000 per year after that.
• C)$100,000 per year during the first two years and up to $500,000 any year thereafter.
• D)$1 million.
• E)$100,000 per year up to a cumulative total of $1 million in all years.

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Definitions:

Inventory Quantity

The amount of merchandise, raw materials, work-in-progress, and finished goods that a company holds at any given point in time.

Days' Sales

A financial metric that calculates the average time it takes for a company to convert its inventory into sales.

Inventory

The total amount of goods, raw materials, and finished products that a business has on hand at any given time.

Overstated Inventory

A situation where the book value of inventory is recorded higher than its actual physical count or market value, potentially misleading financial statements.