5 Written questions
5 Matching questions
- 20. Smork, a USC freshman majoring in chemistry, invents a new body cream that, if rubbed on the skin, sucks out the body fat from that location; it is non-surgery liposuction. With this cream a user can "spot" the area that needs a little thinning, rub some cream on that area, and the fat disappears! Smork names the cream "LIFO "("last in, first off") and names his new corporation that will produce the cream LIFO, Inc. The potential for LIFO is tremendous as the phone rings off the hook with calls from Oprah, Monica, Allie, Rosey, et al. LIFO, Inc. is planning on going public and is preparing the materials to file its registration statement with SEC. What can LIFO Inc. not do during the prefiling period?
A. Make offers to sell its securities
B. Sell its securities
C. Condition the market
D. B and C
E. A, B and C
- 3. Quart-Size is a rapper whose rap is no longer rapping. The sales of Quart-Size's CDs are now quart-size, so on August 1, 2009 Quart-Size files for bankruptcy. Quart-Size does not qualify for a Chapter 7 bankruptcy, so he files for and is granted a Chapter 13 bankruptcy. A five-year payment plan is approved by the Bankruptcy Court. Which of the following is true?
A. Quart-Size receives a discharge on his debts on August 1, 2009
B. Quart-Size must pay his disposable income during the five- year payment plan to a trustee, who distributes the money to Quart-Size's creditors
C. Quart-Size receives a discharge on his debts on August 1, 2014, if all the payments from his disposable income have been paid as required by the payment plan
D. A and B
E. B and C
- 36. (from the book) Which of the following rules permits "qualified institutional investors" to purchase unregistered securities without being subject to the one year holding period of most exempt offerings?
A. Rule 144
B. Rule 144A
C. Rule 506
D. Rule. 147
E. Rule 504
- 29. The small offering exemption exempts the sale of securities not exceeding $__________ during a 12-month period from registration with the Securities Exchange Commission (SEC).
E. No dollar limit
- 27. Disney Company owns the trademark rights and copyrights to its main characters and their stories, such a Mickey Mouse, Pluto, Mulan, Winnie the Pooh, Donald Duck, Pocahontas, Ratatouille, Snow White, WALL-E ("EVE!"), and others. Disney Company enters into a contract with Nike Inc., an athletic wear company that produces athetic shoes, shirts, hats, and other athletic wear, that authorizes Nike Inc. to place likenesses of these characters on Nike's athletic wear. This is an example of
B. Joint venture
C. Strategic alliance
E. Area franchise
- a D. Licensing
- b E. B and C
- c B. Rule 144A
- d E. A, B and C
- e B. $1,000,000
5 Multiple choice questions
- C. three
- D. A and B
- A. Executory contract
- D. Ally is not liable because she has not breached a duty of loyalty by competing with MatchmakingLA.com
- E. None of the above
5 True/False questions
5. Samantha, an MBA student, is a reporter for the Daily Trojan daily newspaper. She writes a daily newspaper article called "Stock Picks" wherein she recommends stocks to buy long or sell short. She always tells the truth in her articles. Samantha writes her articles the day before they are published in the Daily Trojan. Samantha is such a good analyst that she is 90% right with her recommendations and predictions. Because of her analytical ability Samantha's "Stock Picks" articles are widely read and followed by other MBAs, Wall Street investment bankers and securities professionals who follow Samantha's advice and buy and sell short the stocks she recommends, and the market always "moves" up or down based on Samantha stock picks. Samantha, however, has been investing in each company discussed in her Daily Trojan newspaper article the day before the article appears in the newspaper. The U.S. government wants to sue Samantha for a violation of Section 10(b). What theory should the government assert against Samantha?
A. Derivative theory
B. Tipper-Tippee theory
C. Misappropriation theory
D. Issuer theory
E. Respondeat superior theory → C. Misappropriation theory
40. On August 1, 2009, Ethel qualifies for and files a voluntary petition for bankruptcy under Chapter 7. Her petition for Chapter 7 bankruptcy is accepted by the Bankruptcy Court and the Chapter 7 bankruptcy proceedings begin. On November 1, 2009, Ethel's Grandmother dies and Grandmother leaves her entire $1,000,000 fortune to Ethel. Which of the following is true?
A. Ethel can keep all of the money
B. The money becomes property of the bankruptcy estate
C. One-half of the money becomes property of the bankruptcy estate
D. One-third of the money becomes property of the bankruptcy estate
E. None of the above → C. Stewie would be able to exempt $125,000 for his house
31. Lexus Motors and Infiniti Motors sell two high-end pricey automobiles in the United States market. In order to not compete with each other and to therefore keep their prices high for their automobiles, the presidents of the two companies agree that Lexus will sell cars in the states west of the Mississippi River and Infiniti will sell cars in states east of the Mississippi River, and neither will sell cars in the others geographical territory. Which of the following rule applies in examining whether this agreement violates antitrust law:
A. Rule of reason
B. Tying arrangement rule
C. Per se rule
D. Price discrimination rule
E. None of the above → C. Per se rule
10. "Pinkberry" Incorporated is a company that operates a chain of franchised outlets that serve frozen yogurt, smoothies, and other desserts. The company has attained a cult-following of customers called "crackberries." Anyway, Pinkberry franchises franchisees to sell its products at small pink-colored outlets. Each Pinkberry franchisee is granted a specific territory. The Pinkberry Company provides each franchisee with the machines to make the yogurts, smoothies, and other food items, but all of these items are made at each location from yogurt, fruits, berries, and other items purchased by each franchisee. This is considered a ______________________ franchise.
B. Processing plant
E. Fu fu → C. Chain-style
34. On May 1, 2009, after getting angry with his father Peter, Stewie moves from California to Texas and purchases a house in Texas for $3,000,000. Stewie is rich because of his role in the TV series "Family Guy." Stewie pays cash for the house. On April 28, 2010, Stewie declares Chapter 7 bankruptcy and claims a $3,000,000 homestead exemption on his house that is normally allowed by Texas law. Under the new 2005 Bankruptcy Act, which of the following is true?
A. Stewie would be able to exempt $0 for his house
B. Stewie would be able to exempt $1, 500,000 for his house
C. Stewie would be able to exempt $125,000 for his house
D. Stewie would be able to exempt $3,000,000 for his house
E. Stewie would be able to exempt $2,000,000 for his house → C. Stewie would be able to exempt $125,000 for his house