Where a Liability Is Held as a Corresponding Asset by Another

question 20

Multiple Choice

Where a liability is held as a corresponding asset by another entity the fair value of the liability is determined by:

• A)applying a present value technique to measure the liability
• B)applying the cost approach to valuing the liability
• C)measuring the fair value of the corresponding asset
• D)determining the amount required to settle the present obligation

Understand the implications of the Sarbanes-Oxley, Dodd-Frank, and other significant amendments on securities law.

Acknowledge the significance and application of the EDGAR system in SEC reporting.

Grasp the concept of private placements and their exemption from registration.

Understand the legal consequences, including potential liability, of non-compliance with securities laws.

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Definitions:

Behavioralist Approach

A method in economics that uses psychological insights into human behavior to explain economic decision-making.

Legal Cartel Theory

A concept in economic theory suggesting that certain legal frameworks or conditions can enable firms to engage in cartel-like behavior without explicit agreements.

Sherman Act

A landmark federal statute in the field of United States antitrust law passed by Congress in 1890 to prohibit monopolistic business practices.