LES 305 Final Exam questions with
verified answers A+ rated
Chapter 20 flash cards are not on here - correct answer ✔✔
Asset Acquisition - correct answer ✔✔Form of takeover in which another firm buys all the assets of a
firm and gains control through control of the firm's property. If structured property, the acquirer avoid
liability for the debts of the acquired business.
Blue-Sky Law - correct answer ✔✔State law regulating sale of securities.
Comment/Deficiency Letter - correct answer ✔✔SEC response to registration filing; requires additional
information or clarification on proposed offering.
Consolidation - correct answer ✔✔A form of merger in which two firms unite and become known by a
new name.
Due Diligence - correct answer ✔✔Under the Securities Act of 1933, a defense for filing a false
registration statement that requires proof that the individuals involved did all they could to uncover the
truth and could not have discovered the false statements despite a thorough review of all relevant
information.
Exemption - correct answer ✔✔Securities and transactions that do not have to be registered with the
SEC under the Securities Act of 1933.
Foreign Corrupt Practices Act (FCPA) - correct answer ✔✔Federal law prohibiting bribes in foreign
countries and requiring the maintenance of internal controls on accounting for firms registered under
the Securities Exchange Act of 1934.
Howey Test - correct answer ✔✔Created by theU.S. Supreme Court; it defines a security as an
investment in a common enterprise that earns profits from the efforts of others
