A Company Must File a Registration Statement with the SEC

question 71

Multiple Choice

A company must file a registration statement with the SEC providing various financial and company information prior to selling new securities to the public.This registration statement does not need to be filed if the:

• A)issue is less than $50 million.
• B)securities are loans that mature in one year or less.
• C)issue is less than $2.5 million.
• D)securities are valued at less than $5 million and are being sold on the Internet.
• E)securities are loans that mature within nine months.

---

Definitions:

Profits

The financial gain obtained when the revenue generated from business activities exceeds the expenses, costs, and taxes involved in maintaining the business.

Intent Of Partners

The shared objectives or purposes behind forming a partnership among business participants.

Type Of Business

Classification that describes the method a company conducts business, serving as a way to categorize companies based on their activities or market sectors.

Property

refers to items, both tangible and intangible, that are owned by individuals or entities and have value.