LSB EXAM 4 GUARANTEED SUCCESS

LSB EXAM 4 GUARANTEED SUCCESS - Security transactions that involve the original issuance and reissuance of securities by a business to raise capital are referred to as the ️primary market. - A company is considered to "go public" when it sells its voting ️common shares for the first time to outside investors using public markets like the New York Stock Exchange. - The federal laws, regulations, and exemptions that govern the primary market are found in the Securities Act of ️1933. - ️Individual investors hold securities directly or through a brokerage firm, while ️institutional investors hold securities through pension funds and mutual funds. - The most common type of ️intermediaries are brokerage firms, known as broker-dealers, that buy and sell securities for clients. - A public outcry and diminishing investor confidence in corporate financial disclosures prompted Congress to reform the entire corporate governance regulatory framework by enacting the ️Sarbanes-Oxley Act of 2002. - The public reaction to the Enron scandal and declining public trust in the oversight of financial fraud led ️Congress to pass several laws aimed at improving the quality of financial disclosures by public corporations. - Under the Sarbanes-Oxley Act, the requirement for the repayment of corporate bonuses awarded based on misleading disclosures is referred to as a ️clawback provision. - The Sarbanes-Oxley Act aims to enhance ️auditor independence. - The loan program established by the American Recovery and Reinvestment Act of 2009 created the ️Troubled Asset Relief Program to administer the loans. - A common form of agency is a(n) ️employer-employee relationship. - If Juan hires ABC Painting, Inc. to paint his house, but the house is destroyed by a lightning strike before ABC begins to work, the agency relationship between Juan and ABC is terminated by ️operation of law. - To determine whether the parties have indeed indicated an offer of agency and acceptance by the agent, courts apply a(n) ️objective standard. - An agent labeled as a(n) ️independent contractor is not regarded as an employee and lacks the legal protections afforded to employees, such as minimum wage and overtime laws. - Suppose Jeff and Douglas are college roommates who both decide to do their laundry at the dormitory facility on Tuesday evening. Since Jeff needs to study for a biology exam, he asks Doug to pick up his laundry as a favor, and Doug agrees. In this scenario, Doug is ️Jeff's gratuitous agent. - The Fair Labor Standards Act (FLSA) cannot be properly understood without considering two significant historical events that occurred in the early twentieth century: the ️Industrial Revolution and the Great Depression. - Morris is a nonexempt employee earning a salary of $400 a week for a 40-hour workweek. If he works 50 hours in one week, his paycheck should total ️$550. - Laws that provide compensation for employees with job-related injuries or illnesses are known as ️worker's compensation, and benefits are paid based on a percentage of the employee's salary at the time of the incident. - An injured worker is not eligible for workers' compensation if the injury was self-inflicted or resulted from certain behaviors, except in the case of ️the employee's track record of attendance. - The most common type of ️intermediaries are brokerage firms, also known as broker-dealers, that conduct buy and sell transactions for clients. - If an employer provides retirement benefits, they are usually offered in the form of a ️pension or through a tax-deferred retirement savings account, such as a 401(k) plan. which of the following is not a factor considered when classifying an employee as covered or exempt ️whether the employee uses the employer's tools or his/her own the fair labor standards act was originally intended to cover employers engaged in ️interstate commerce only investors seek a return from their investment based on the ___ of the security ️value under the health care and education reconciliation act, employers offering high-end health care policies in 2018 will be required to pay additional taxes to help fund the act's plan. a high-end health care policy is defined as one costing more than ️$27,500 per year fundamentally, an agency transaction involves creation of agency, performance obligations and duties, and ️termination of agency the irs has developed a three-prong test to determine an agent's status. which of the following is not a prong in this test ️whether the working relationship is written or oral while substantial portions of the sarbanes-oxley act are aimed at solving specific mechanism failures in auditing and other accounting procedures, the law also imposes higher levels of ___ responsibility for those involved in corporate governance ️fiduciary what caused a stunning reversal and ordered retrial by the u.s. supreme court in arthur andersen llp vs united states, of andersens' conviction in 2005 ️improper jury instructions one of the most important aspects of new deal legislation was the enactment of various employment laws, one of which was the ️fair labor standards act which of the following is not covered under the fair labor standards act ️working conditions