Which of the following is true of Section 11 of the Securities Act of 1933?
A. It permits injured private parties to bring criminal actions against issuers who file fraudulent registration statements.
B. It imposes liability on those who defraud investors intentionally or are negligent in not discovering the fraud.
C. It allows an issuer to assert a due diligence defense against the imposition of Section 11 liability.
D. It does not apply to a case involving the negligent omission of a material fact in a registration statement.
Answer: B
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Assets classified as property, plant, and equipment are reported at:
A) each asset's estimated market value less depreciation on the balance sheet date. B) each asset's estimated market value on the balance sheet date. C) the estimated salvage value on the balance sheet date. D) each asset's original cost less depreciation since acquisition.
Which maintainability factor specifies the number of unknown errors existing in the system after it is installed?
A) Latent defects B) Number of customers C) Quality of system documentation D) Maintenance personnel
According to MM Proposition II with no taxes, the:
A) return on assets is determined by financial risk. B) required return on equity is a linear function of the firm's debt-equity ratio. C) cost of equity in inversely related to the firm's debt-equity ratio. D) cost of debt must equal the cost of equity. E) required return on assets exceeds the weighted average cost of capital.
Tax treaties can prevent double taxation by:
a. providing reduced tax rates and reduced withholding b. not allowing the exemption of certain types of income from taxation c. including a "savings clause" d. all of these are correct