Comprehensive Test Review Exam
Quiz_________________?
-a disclosure document that describes a financial security for potential buyers
-contains financial info related to issuer and controlling persons
-provided to interested investor, NOT SEC
-just conform to statutory requirements (does not mean good investment, SEC is just fact-
checkers) -
ANSWER✅
prosepectus
Quiz_________________?
-allows company to raise up to $1 million by selling securities
-Allow non-credited investors to participate in smaller companies -> crowdfunding
-easier for less wealthy people to invest -> less sophisticated investors making riskier
investments? many Pros and cons -
ANSWER✅
title III jobs act
1
, Quiz_________________?
-coming out of great depression
-designed to give potential investors sufficient info to make intelligent investment decisions
based on factual info
-want to protect the public -
ANSWER✅
securities: why
Quiz_________________?
-companies that buy up other peoples' patents (intangible personal property)
-only want to sue people for violating that patent, even if it's your own patent
-Don't contribute much to innovation environment/add no value to economy
-Subject to fines if the claims of infringement (violation) are vague and unsupported -
ANSWER✅
patent trolls
Quiz_________________?
-Do not represent true inventions
-Mere ideas are not patentable (must be reduce to practice)
-Laws of nature, natural phenomena, mathematical formulas
-General biz concepts vs "methods" or "processes" are tricky --> taking patentable ideas and
saying "done by a computer" isn't enough -
ANSWER✅
categories of SM that can't be patented
Quiz_________________?
2
, -Employees have to turn over what they did in employment
-"work made of hire" language in outsourced deals -
ANSWER✅
who owns copyrights in a corporate setting
Quiz_________________?
-have authority to challenge mergers
-HHI: measure of market concentration (market share)
-federal trade commission and department of justice -
ANSWER✅
DOJ and FTC
Quiz_________________?
-Legal to engage in preliminary negotiations and agreements with underwriters
-Illegal to actually SELL the securities -
ANSWER✅
prefiling period (security)
Quiz_________________?
-Made within a 6-month time period
-Presumed to be illegal
-Insiders are prohibited -
ANSWER✅
short-swing profits
3
, Quiz_________________?
-Mandates certification of internal financial controls by AUDITOR (not putting in fake
numbers, fudging the statements)
-Decline in restatements of financial reports indicate + impact of SOX -
ANSWER✅
SOX section 404
Quiz_________________?
-Mutual benefit: reasonable standard of care that bailee must show (ex. exchanging money)
-Benefit of bailor: slight duty of care; less than reasonable standard (ex. Bailor putting car in
bailee's garage)
-Benefit of bailee: very high duty of care; higher than reasonable standard (ex. borrowing
Bailor's car) -
ANSWER✅
Types of Bailments
Quiz_________________?
-New invention -> legal monopoly for period of time (only company who can sell, import
this item)
-Creates an incentive to create more inventions and make money effectively -
ANSWER✅
patent law
Quiz_________________?
-normally takes 20 days to allow SEC to investigate accuracy
-Still illegal to sell securities
4
Quiz_________________?
-a disclosure document that describes a financial security for potential buyers
-contains financial info related to issuer and controlling persons
-provided to interested investor, NOT SEC
-just conform to statutory requirements (does not mean good investment, SEC is just fact-
checkers) -
ANSWER✅
prosepectus
Quiz_________________?
-allows company to raise up to $1 million by selling securities
-Allow non-credited investors to participate in smaller companies -> crowdfunding
-easier for less wealthy people to invest -> less sophisticated investors making riskier
investments? many Pros and cons -
ANSWER✅
title III jobs act
1
, Quiz_________________?
-coming out of great depression
-designed to give potential investors sufficient info to make intelligent investment decisions
based on factual info
-want to protect the public -
ANSWER✅
securities: why
Quiz_________________?
-companies that buy up other peoples' patents (intangible personal property)
-only want to sue people for violating that patent, even if it's your own patent
-Don't contribute much to innovation environment/add no value to economy
-Subject to fines if the claims of infringement (violation) are vague and unsupported -
ANSWER✅
patent trolls
Quiz_________________?
-Do not represent true inventions
-Mere ideas are not patentable (must be reduce to practice)
-Laws of nature, natural phenomena, mathematical formulas
-General biz concepts vs "methods" or "processes" are tricky --> taking patentable ideas and
saying "done by a computer" isn't enough -
ANSWER✅
categories of SM that can't be patented
Quiz_________________?
2
, -Employees have to turn over what they did in employment
-"work made of hire" language in outsourced deals -
ANSWER✅
who owns copyrights in a corporate setting
Quiz_________________?
-have authority to challenge mergers
-HHI: measure of market concentration (market share)
-federal trade commission and department of justice -
ANSWER✅
DOJ and FTC
Quiz_________________?
-Legal to engage in preliminary negotiations and agreements with underwriters
-Illegal to actually SELL the securities -
ANSWER✅
prefiling period (security)
Quiz_________________?
-Made within a 6-month time period
-Presumed to be illegal
-Insiders are prohibited -
ANSWER✅
short-swing profits
3
, Quiz_________________?
-Mandates certification of internal financial controls by AUDITOR (not putting in fake
numbers, fudging the statements)
-Decline in restatements of financial reports indicate + impact of SOX -
ANSWER✅
SOX section 404
Quiz_________________?
-Mutual benefit: reasonable standard of care that bailee must show (ex. exchanging money)
-Benefit of bailor: slight duty of care; less than reasonable standard (ex. Bailor putting car in
bailee's garage)
-Benefit of bailee: very high duty of care; higher than reasonable standard (ex. borrowing
Bailor's car) -
ANSWER✅
Types of Bailments
Quiz_________________?
-New invention -> legal monopoly for period of time (only company who can sell, import
this item)
-Creates an incentive to create more inventions and make money effectively -
ANSWER✅
patent law
Quiz_________________?
-normally takes 20 days to allow SEC to investigate accuracy
-Still illegal to sell securities
4
