The Approach to Social Responsibility Most Likely to Be Taken

question 53

Multiple Choice

The approach to social responsibility most likely to be taken by a typical large U.S. company is the _____ approach.

• A) accommodative
• B) proactive
• C) defensive
• D) obstructionist
• E) offensive

Analyze the legal consequences for violations of securities laws and the civil liabilities arising from such violations.

Understand the powers granted to the SEC by the Securities Enforcement Remedies and Penny Stock Reform Act of 1990.

Grasp the theories of liability under the SEC Rule 10b5-2.

Analyze whether a corporation needs to register with the SEC based on assets, capital needs, and shareholder count.

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Definitions:

Disaffirm

The legal right of a party to renounce or reject a contract, especially used in cases where one party is a minor or was deceived.

Legally Obligated

It means being bound or required by law to do something.

Capacity

The legal competency to enter into agreements or contracts, often related to age, mental state, and understanding of obligations.

Valid Contract

A legally binding agreement between parties to do or not do certain things.