Multiple choice

1 The transmission of culture from one person (or generation) to the next is dependent on 

Answer

a. natural human instincts.

b. the human capacity for language.

c. the human capacity for creating and using technology.

d. a large brain.

2"Fundamental corporate change" consists of: 

Answer

a. Amending the articles of incorporation

b. Merging with another corporation

c. Dissolution and termination of the corporation

d. All of the above.

2 Which of the following is FALSE about U.S

securities laws? 


Answer

a. The definition of a "security" is broadly construed by the courts.

b. Insider trading by an insider and by a tipee in conspiracy with an insider is illegal.

c. Trading on inside information by the "lucky" or the "smart" is always illegal since it is not fair to the other party who does not have the inside information.

d. Silence, that is, the failure to disclose material facts regarding the purchase or sale of a security is illegal.

3 Which of the following facts is the best evidence of the existence of a partnership relationship? 

Answer

a. Joint or common ownership of property

b. Sharing of gross returns of a business

c. Sharing of net profits of a business

d. Joint participation in a business activity