Which of the Following Would Be Considered an Accredited Investor

question 58

Multiple Choice

Which of the following would be considered an accredited investor?

• A) Any natural person whose annual income has been at least $200,000 for the two previous years and expects to make at least $200,000 in the current year.
• B) Any corporation or partnership with total assets in excess of $5 million.
• C) Insiders of the issuers, such as executive officers or directors.
• D) Colleges and universities.
• E) All of these.

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Definitions:

Price and Quantity

The relationship between the price of an item and how much of that item is available or demanded at that price point.

Government Licensing

The requirement of official permission or a permit from a government authority to legally perform certain activities, operate a business, or practice a profession.

Competitive Market

A market structure characterized by a large number of sellers and buyers, where no single entity has the power to influence prices significantly.

Market Failure

Market failure occurs when the allocation of goods and services by a free market is not efficient, often leading to a net social welfare loss.