Mini game LAW102

By Trần Chính

Multiple Choice

What is the primary purpose of the Securities Act of 1933?

• To protect investors by requiring companies to disclose financial information.

• To enhance the power of securities companies.

• To reduce taxes for businesses.

• To promote the bond market.

Multiple Choice

Which agency was established by the Securities Act of 1934?

• U.S. Securities and Exchange Commission (SEC).

• Federal Reserve System.

• U.S. Department of the Treasury.

• Bureau of Business Management.

Multiple Choice

What is a prominent characteristic of a sole proprietorship?

• Can issue stock to the public

• Has unlimited liability for debts

• Is not required to publicly report financial information.

• Has multiple shareholders.

Multiple Choice

What rights does a corporation have?

• Can only own personal assets.

• Can issue stocks and bonds.

• Cannot enter into contracts.

• Has unlimited liability for debts.

Multiple Choice

What is a void contract?

• A contract that is valid but unenforceable.

• A contract that has no legal value.

• A contract that is only temporarily valid.

• A contract that is canceled after signing.

Multiple Choice

What is an advantage of a Limited Liability Company (LLC)?

• Has unlimited liability.

• Has a complex management structure.

• Protects the personal assets of its members.

• Cannot issue stock.

Multiple Choice

According to the Securities Act of 1970, which statement is true?

• Only large companies need to disclose information

• Companies must provide full and accurate information to investors.

• There are no financial reporting requirements.

• Companies have complete freedom in issuing securities.

Multiple Choice

Who has the right to sue in the case of a void contract?

• Anyone in society.

• Only directly involved parties.

• The executive branch.

• The securities regulatory agency.