A prospectus is provided to disclose information when the corporation is selling new issues of securities to potential investors. True or False True False
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A: The answer is False. In an IPO the share were not public and would be issued now.
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- The major difference between realizing a capital loss or a business investment loss is the sale of shares or write-off of debts of a Small Business Corporation. True FalseProxy company analysis can be used to accomplish which of the following: a. Help define appropriate milestones b. Identify risk factors that may need to be addressed c. Establish benchmarks for key metrics that can be used as part of a company’s financial model d. Help determine an appropriate valuation for a new venture e. Only a, b and c f. All of the aboveWhich of the following is true regarding the financing lifecycle?A)Mergers & Acquisitions primarily occur before a company receives Bank FinancingB)Security offerings are typically the first source of OUTSIDE capital for a businessC)Owners typically invest after receiving bank loansD)Venture Capitalists typically make equity investments in private companiesE)Private Equity financing is not available until after a company has issued security offerings
- Gowns a Business Overhead Expense policy with a monthly benefit of $5,000. G pays an annual premium on January 1. On June 1 of the same year, G sells the later, G becomes disabled as the result of a fall. In this situation, which of the following monthly benefits, will Greceive? O A OC D. $10,000 $5,000 $2,500 $0What activities are commonly associated with Shadow Banking? I. Securitization activity centered around structured investment vehicles (SIV) but not special purpose vehicles (SPV). II. Hedge funds. III. Secured financing based on repo and stock lending agreements. IV. Money market mutual funds. Question 3Answer a. I, II, III and IV. b. I, II and IV only. c. I, II and III only. d. II, III and IV only.What is the main reason lenders pay borrowers' property taxes through a pre-paid escrow account? It prevents a tax lien from being applied to the home. The tax lien would be senior to the mortgage lien. It prevents the borrower from refinancing with another lender because they would lose all of their escrow funds. It allows the lender to earn interest on the pre- paid tax money as itsits in the account. It allows the lender to take advantage of corporate tax deductions.
- Define what is meant by a permanent file, and list several types ofinformation typically included. Why does the auditor not include the contents of thepermanent file with the current year’s audit file?Explain in detail the similarities and differences between the following types of annuities: a.SPIA b.SPDA c.FPDA d.Why no FPIA?Investors tend to only invest in stocks of companies that pay high dividends. True False
- One company offers a candidate for employment 1,200 shares os stock options. Another company provides the same candidates an offer of 400 shares of restricted stock. Asuume both offers provide the same salary and comparable benefits. A.Both offers are equally valuable B. The offer with stock options is more valuable C. The odder with restricted stock is more valuable D. We need more information to determine which offer is more valuableIn many states, including New York, an operating agreement is required for a limited liability company to exist. True FalseBill Matthews is investing $13,200 in the Washington Mutual fund. The fund charges a 5.75 percent commission when shares are purchased. Calculate the amount of commission Bill must pay.