21.Select the phrase that best completes the sentence.

In the 1920's, most of the trading on the New York Stock Exchange

	A.	was regulated by the Securities and Exchange Commission.
	B.	was in securities that were exempt from Securities and Exchange Commission regulation.
	C.	was in securities that were required to routinely file disclosures concerning their financial performance with the federal government.
	D.	was done on margin.

22.Which of the following statements concerning limited liability companies (LLCs) are true?

	A.	LLCs must have two or more members.
	B.	In order to form an LLC, the organizer must file articles of organization with the Secretary of State.
	C.	Only United States citizens or residents of the United States may be LLC members.
	D.	Members of an LLC are jointly and severally liable for the liabilities of the LLC.
	E.	Generally, LLCs are not taxed at the entity level.
	F.	LLCs do not survive the death of their owners.

23.Section 10(b) of the Exchange Act is the statutes anti-fraud provision. Pursuant to 10(b) of the Exchange Act, the SEC adopted Rule 10b-5. As to Rule 10b-5 which of the following statements are true. Select all that apply.

	A.	Rule 10b-5 prohibits the use of any "device, scheme, or artifice to defraud," and creates liability for any misstatement or omission of a material fact, or one that investors would think was important to their decision to buy or sell the stock.
	B.	Although Rule 10b-5 prohibits any misstatement or omission of a material fact, the rule prescribes penalties that may be assessed by the SEC but does not create a private cause of action for investors.
	C.	In interpreting Rule 10b-5, courts held early on that investors can sue under the rule.
	D.	Only issuers and their employees may be liable under Rule 10b-5.
	E.	Under Rule 10b-5, a wide range of participants, from brokers to issuers to company employees may be liable, provided that the fraud was "in connection with" a securities purchase or sale.

24. In Banker v. Estate of Banker, the court found that Arnold, who was the only partner to actually operate the partnership's campground business.

	A.	had waived his right to compensation.
	B.	was entitled to compensation because the partnership agreement had modified the default rule.
	C.	was entitled to compensation because this was his full-time job and livelihood.
	D.	was not entitled to compensation, pursuant to the default rule, even though the business' earnings were attributable to his efforts.

25. A partnership can raise capital in which of the following ways?

	A.	Selling ownership interests.
	B.	Contributions from partners.
	C.	Going public.
	D.	Borrowing.