Which of the following is a false statement regarding trusts?
A. A settlor may revoke a trust at any time.
B. A trust document may state that the trust will terminate when an event happens, such as when the remainderman reaches a certain age.
C. A court can place assets of a partnership in a constructive trust if it discovers that one partner is engaging in fraudulent or unconscionable conduct that might negatively affect the interests of another partner.
D. Settlors may create trusts to prevent individuals from getting access to certain assets.
E. Trusts may be set up to make "awards" to family members who make significant contributions in certain fields, such as education, science, law, or medicine.
Answer: A
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A shorter payback period reduces the company's ability to respond to unanticipated changes and increases the risk of having to keep an unprofitable investment.
Answer the following statement true (T) or false (F)
VuPlay Company contracts to deliver one hundred 60-inch 3D HD television sets to a new retail customer, Watchbox Store, on May 1, with payment to be made on delivery. VuPlay tenders delivery in its own truck. Watchbox's manager notices that some of the
cartons have scrape marks. Watchbox's owner phones VuPlay's office and asks whether the sets might have been damaged as they were being loaded. VuPlay assures Watchbox that the sets are in perfect condition. Watchbox tenders VuPlay a check, which VuPlay refuses, claiming that the first delivery to new customers is always for cash. Watchbox promises to pay the cash within two days. VuPlay leaves the sets with Watchbox, which stores them in its warehouse pending its "Grand Opening Sale" on May 15 . Two days later, Watchbox's stocker opens some of the cartons and discovers that a number of the sets are damaged beyond ordinary repair. VuPlay claims Watchbox has accepted the sets and is in breach by not paying on delivery. Will VuPlay succeed on these claims? Explain.
When Looking Glass Corporation wishes to issue certain securities, it must provide sufficient information for Alice, and other unsophisticated investors, to evaluate the financial risk involved. Specifically, the law imposes liability for making a false statement or omission that is "material." What sort of information would Alice consider material?
What will be an ideal response?
Under securities law, knowingly making a misstatement in company reports is punishable by which of the following:
a. fines up to $5 million b. fines up to $10 million c. up to 20 years in prison d. up to 30 years in prison e. both a and c are possible