Eve Is a Promoter and Has Approached Adam with an Investment

question 37

Multiple Choice

Eve is a promoter and has approached Adam with an investment opportunity.Eve anticipates a generous profit and informs Adam that he too can realize a generous profit also.This opportunity is not being offered to others.Assuming all other requirements to classify this as a security are in evidence,the commonality of this transaction would be described as a:

• A) horizontal commonality.
• B) parallel commonality.
• C) vertical commonality.
• D) common commonality

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Definitions:

Restrictive Covenant

Legal agreements restricting certain actions of a party, often related to employment, real estate, and business transactions, to protect business interests.

Residential Use

The utilization of property for living purposes as opposed to commercial or industrial uses.

Industrial Areas

Regions or territories designated for the development and concentration of factories, production facilities, and other industrial operations.

Manufacturing Unit

A manufacturing unit refers to a facility or factory where goods are produced through the combination of labor, machinery, and processing techniques.