Technology

question 120

Multiple Choice

Technology:

• A) Reduces the time, effort and cost of recordkeeping.
• B) In accounting is only available to large corporations.
• C) Has not improved the clerical accuracy of accounting.
• D) Has replaced accounting.
• E) In accounting has replaced the need for decision makers.

Understand the role and regulations of the Securities and Exchange Commission (SEC) in securities offerings.

Recognize the requirements for registration statements and the effects of distributing a prospectus.

Identify what constitutes a security under the Securities Act of 1933.

Understand the concept of insider trading and its legal implications.

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Definitions:

Regulatory Requirements

Legal obligations that entities must follow, often established by government agencies to regulate industry standards and protect public welfare.

Agent's Authority

The scope of power given to an agent to act on behalf of a principal in legal or financial matters.

Termination

The act of ending or concluding something, such as a contract, employment, or agreement, through specific actions or by operation of law.

Dissolution

The process of legally dissolving a corporation or partnership, ending its existence as a legal entity.