Practice Quiz

Paralegal Exam Prep - Question List

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176. Richie, a shrewd investor, just purchased 6% of the equity of Inter-Net, Inc. Why must Richie report this transaction to the Securities and Exchange Commission (SEC)?
  1. Because of concerns about insider trading issues.
  2. Because of concerns that the transaction is unconscionable.
  3. Because of concern that the trade is erroneous.
  4. Because of concerns about a possible takeover.
  5. None of the above.
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177. The key provisions of the Sarbanes-Oxley Act of 2002 are:
  1. Companies must file certain disclosures with the Securities and Exchange Commission and the fiduciary duties of managers of junk bond funds.
  2. Senior management must certify the accuracy of reported financial statements and management and auditors must establish internal controls.
  3. Investment advisors must register with the Securities and Exchange Commission and the Securities and Exchange Commission must monitor the activities of investment advisors.
  4. The Securities and Exchange Commission must appoint independent trustees to oversee bond sales and must monitor the activities of investment advisors.
  5. A and B
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178. Enron Corporation was an energy trading and utility company that was at the center of one of the largest accounting scandals in U.S. history. Its executives used accounting practices that inflated the company's revenues. The result was that Enron filed for bankruptcy, its employees lost millions of dollars, and several of its top executives were prosecuted and jailed. What legislation was enacted in part as a response to the Enron scandal?
  1. Accounting Fraud Accountability Act
  2. Sarbanes-Oxley Act
  3. Securities and Exchange Act
  4. Accounting Advisors Act
  5. Skilling-Lay Act
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179. A public company is:
  1. A company that is listed on the New York Stock Exchange.
  2. A listed company.
  3. A company that has issued securities through an initial public offering and is traded on the open market.
  4. A company owned by a small amount of shareholders.
  5. A company that has shareholders.
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180. A privately held company is also referred to as:
  1. A close corporation
  2. An unquoted company
  3. An unlisted company
  4. All of the above
  5. None of the above
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