The Difficulty and Costs Involved in Maintaining the Legal Form

question 49

Multiple Choice

The difficulty and costs involved in maintaining the legal form of a business relates to

• A)the personal liability of the business owner.
• B)the complexity and organizational costs in setting up and maintaining an entity.
• C)the control of the business.
• D)the ability of the business to raise capital.

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Definitions:

Professional Conduct

Adherence to ethical standards and practices expected in a professional setting, often governed by official bodies or codes of ethics.

Short Sales

Short sales involve selling borrowed securities with the anticipation that their value will decrease, allowing them to be bought back at a lower price for a profit.

Margin Requirement

The minimum amount of equity that must be maintained in a margin account as dictated by a broker or exchange to hold a position in securities.

Regulation NMS

A set of rules designed to modernize and improve the US National Market System for equity trading.