LSB Exam 4
Which of the following is true regarding equity instruments?
They represent ownership interests.
The underlying premise of all securities regulation is __________.
disclosure
A common form of agency is a(n) __________ relationship.
employer-employee
Workers' compensation statutes establish a structure for an employee to be compensated through a statutorily mandated insurance program as the __________ remedy for workplace injuries or illnesses.
exclusive
A security is any investment that involves a person giving something with a(n) __________ through the efforts of a(n) __________.
expectation of profit; third party
Upon approval by a __________ court, the SOX Act allows the __________ to force any __________ corporate payouts into a government-controlled emergency escrow fund that is pending further investigation by authorities.
federal; Securities and Exchange Commission (SEC); extraordinary
Generally, the Troubled Assets Relief Program (TARP) required loan recipients to __________.
impose restrictions on compensation of officers; form an independent compensation committee; and give shareholders more say regarding the compensation of officers and directors
Parties that sell securities to investors are known as __________.
issuers
To determine whether the parties have in fact manifested an offer of agency and acceptance by the agent, courts apply a(n) __________ standard.
objective
In a __________ plan, the employer promises to pay a monthly sum to employees who retire from the company after a certain number of years of service.
pension
In the __________ market for securities transactions, issuers raise capital by selling securities in public markets or in private placements.
primary
Pursuant to Dodd-Frank, if the Securities and Exchange Commission (SEC) is successful in an enforcement action, the whistleblower reward __________.
ranges from ten (10) to thirty (30) percent of the recovery
Much of agency law exists on the __________ statutory level and is based on the __________.
state; restatement
To trigger protection under workers' compensation laws, the injury must meet two (2) main criteria: __________ and __________.
the employee's injury resulted from the employer's negligence; the injury occurred within the course of employment
The Fair Labor Standards Act's (FLSA's) primary provisions mandate __________.
the payment of a minimum wage; a maximum 40-hour work week; and restrictions on child labor
Through the Dodd-Frank Wall Street Reform and Consumer Protection Act, the United States Congress imposed __________ restrictions on __________.
tighter; public corporations, financial markets, and the extent to which firms engaged in risky investment transactions
The Family and Medical Leave Act (FMLA) mandates that employers provide up to __________ weeks of unpaid leave to employees for purposes related to family medical matters during any _______ month period.
twelve (12); twelve (12)
In the event an employee is terminated for whistleblowing, the Dodd-Frank anti-retaliation provision allows the whistleblower to sue for up to __________.
two (2) times back pay
What are two prevalent forms of equity instruments issued by corporations?
Common stock and preferred stock
The Securities and Exchange Commission's (SEC's) computer database is known as __________.
EDGAR
Which of the following is true regarding the risk capital test?
It analyzes whether an investment opportunity falls under the purview of a state's blue-sky laws.
Which of the following is true regarding the Securities and Exchange Commission (SEC)?
It has wide-ranging executive, legislative, and judicial powers.
Suppose that Jeff and Douglas are college roommates. Both chose to do their laundry at the dormitory laundry facility on Tuesday evening. Since Jeff had to study for a biology examination, he asked Doug to pick up his laundry as a favor for him when it was done, and Doug agree to do so. In this case, Doug is __________.
Jeff's gratuitous agent
Which of the following is true regarding professional licensing in the American workplace?
Licensing requirements for professions vary from state to state.
Which legislation regulates the issuance of securities to public investors by requiring that companies file certain information intended to inform investors who are considering entering into a securities transaction?
The Securities Act of 1933
Approximately what percentage of American workers are professionally licensed?
29%
Which of the following is an example of an employer-provided, tax-deferred retirement savings account?
A 401(k) plan
What is the process of negotiating an agreement on behalf of an entire workforce as opposed to individuals negotiating privately on their own behalf?
Collective bargaining
In the wake of multiple corporate fraud and malfeasance scandals that began to emerge in 2000, a public outcry and a growing lack of investor confidence in corporate financial disclosures caused the United States Congress to overhaul the entire corporate governance regulatory structure by passing the __________.
Sarbanes-Oxley Act of 2002
Violators of the SOX Act are __________.
Subject to both civil penalties and criminal
What independent regulatory body was created to provide financial stability after the financial crisis of 2008?
The Financial Stability Oversight Council (FSOC)
Which of the following tests determines an agent's status based on: (1) the behavioral aspects of the agency; (2) the financial arrangements between the principal and the agent; and (3) the type of working relationship the parties have in terms of benefits and promises and continuing employment?
The IRS Test
Which of the following is true regarding whether the law deems an Uber driver an Uber employee or an independent contractor?
The issue remains unresolved, as it is still working its way through courts and labor boards.
Which of the following is true regarding termination of an agency relationship?
The principal and agent may agree to end the agency once the agency's purpose has been accomplished.
Fundamentally, the Dodd-Frank whistleblower provisions are based on __________.
a bounty plan
