In a hostile takeover, what does the term "going private" reference? Multiple Choice O A leveraged buyout O An initial public offering O A poison pill O A confiscatery taking O The non-disclosure of information related to the corporate takeoverKite Sales. Wendy is president of ABC Kites, a business that manufactures kites. Her company's kites are sold to large toy stores. After Wendy learned a great deal about kites, she started to make kites at home and to promote them to large toy stores. She also started selling kites to friends. Some of the directors learned about her kite sales and accused her of wrongdoing. Wendy denied any wrongdoing. What measures, if any, will be imposed on Wendy for her home kite sales? Multiple Choice O None, because Wendy did not engage in any wrongdoing. O She will be required to cede to the corporation one-half of any profits she earned as a result of the breach. O She will be required to cede to the corporation only the profits she earned as a result of the breach that the corporation can prove beyond reasonable doubt it lost as a result of her actions. O She will be required to cede to the corporation any profits she earned as a result of the breach unless she can prove by a preponderance of the evidence that the corporation lost no sales as a result of her actions. She will be required to cede to the corporation all the profits she earned as a result of the breach.The exception to the at-will rule is that an employer may not fire an employee for a(n) reason. Multiple Choice O articulable O illegal O personal O personnel O financialMultiplication. Phyllis, who is 30 years old, works for We Add for You Accounting. Phyllis has worked there for a number of years and is considering quitting in order to spend more time with her three active triplets, Sunny, Fussy, and Perky. She asks her boss, Bolivar, about the pension plan at We Add for You. Her boss tells her that she is not entitled to that information until she is at least 60 years old. Phyllis also asks about retaining her medical insurance protection if she quits and is told that she would have no right to do so. Bolivar also throws in that he has been monitoring her conversations and that he particularly enjoys the conversations between her and her single female friends involving failed dating experiences. He asks her to keep those up. Phyllis tells him that her personal phone calls are none of his business. Bolivar says that he can listen if he wants because the phones are his. Phyllis ends up starting her own company called We Multiply for You, and makes much, much more money. (In answering the following questions, assume all federal laws apply and that any pension and medical plan qualifies for regulation under federal law.) Assuming Phyllis quits, which of the following rights does she have under federal law to retain benefits so long as the benefits are provided to employees who are still working? Multiple Choice O None O The right to retain the medical benefits indefinitely, if she pays for them along with the allowable administrative fee O The right to retain the benefits for at least twelve (12) months, with the cost assumed by the employer O The right to retain the benefits for at least eighteen (18) months, with the cost assumed by the employer O The right to retain the benefits for at least eighteen (18) months, if she pays for the benefits along with the allowable administrative feeIn Trouble. Bruno, an issuer of stock, may be in trouble. He sold stock in a new health club venture before the effective date of registration. He did so because he was in financial trouble involving other ventures of his and needed additional funds. Bruno thought that the health club venture would be such a success that he would never get caught in regard to the stock sale. Unfortunately, he was wrong. The health club venture was going very poorly and investors were looking for some way to hold Bruno responsible. Another problem Bruno has is that he inflated information regarding the prospects of the health club in the prospectus. Investors bitterly complained. Rick, a new lawyer, told Bruno that as far as he knew, the Securities and Exchange Commission (SEC) could fine Bruno under the Securities Act of 1933 but could not send him to jail. Bruno told Rick that was good news and that no one should feel sorry for the investors because none of them made any effort to check on information contained in the prospectus or to investigate the future profitability of the health club venture. Bruno says that he plans to rely on the due diligence defense. Bruno also asks Rick if he is aware of any other defenses. Bruno says that he has never previously been in trouble with the SEC. Which of the following is true regarding Bruno's sale of securities before the effective date of registration? Multiple Choice O He will be able to avoid liability if he can establish the due diligence defense. O He will be able to avoid liability if he can establish that the investors who purchased stock early were aware that the securities were sold before the effective date of registration. O He will be able to avoid liability if he can establish that the sales before the effective date did not directly result in any losses to investors. O That is not a violation of the securities laws, so there is no question about liability. He will almost certainly be liable because the Securities Act of 1933 provides no defenses for that violation.Coffee shops. Bernice wants to open a chain of coffee shops and begins by asking her friends in various states around the country to invest through the purchase of securities in the coffee shops. Her friend Robbie says that he would like to invest but that she should be sure that she satisfies requirements of the Securities and Exchange Commission (SEC). He tells her that she has to provide information to the SEC involving a description of the securities, an explanation of how proceeds will be used, information regarding the management of the company, and other matters. He tells her that she also has to provide a document to the SEC that will be provided as an advertising tool to potential investors who can rely on it to decide whether they should buy securities. Bernice says that she does not want to do that. She explains to Robbie that insofar as the coffee shop venture is concerned, she does not want to advertise, and she wants to offer securities only to a limited number of wealthy friends. Particularly, she has in mind Scott who has a net worth of at least $3 million and Mary, a psychiatrist. Mary recently filed bankruptcy because of some bad decisions involving an elaborate decoration of her office. Although her income for the past couple of years has been in the range of $80,000, business is improving based on her recent involvement with a number of patients suffering anxiety based upon a fear of alien invasion. Which of the following is the term for the document referenced by Robbie involving information to be provided to the SEC involving a description of the securities, an explanation of how proceeds will be used, information regarding the management of the company, and other matters? Multiple Choice An initial public offering O A confirmation statement O A registration statement O An acknowledgement statement O A reference statementWhich of the following was the ruling in Stoneridge Inv. Partners, LLC v. Scientific-Atlanta, Inc., the case in the textbook in which the United States Supreme Court addressed the issue of the liability of bankers, lawyers, and other third parties who did not directly mislead investors but worked with corporations that did? Multiple Choice O That bankers, lawyers, and other third parties who did not directly mislead investors but worked with corporations that did can be held liable to the same extent as the primary wrongdoers O That bankers, lawyers, and other third parties who did not directly mislead investors but worked with corporations that did could be held liable to shareholders only if the primary wrongdoers were insolvent, and that the secondary wrongdoers could be punished by criminal prosecution and enforcement actions by the Securities and Exchange Commission (SEC) O That bankers, lawyers, and other third parties who did not directly mislead investors but worked with corporations that did could be held liable to shareholders only if the primary wrongdoers were insolvent, and that the secondary wrongdoers could not be punished by criminal prosecution and enforcement actions by the Securities and Exchange Commission (SEC) That bankers, lawyers, and other third parties who did not directly mislead investors but worked with corporations that did cannot be sued by shareholders, and cannot be held criminally liable or be subject to enforcement actions by the Securities and Exchange Commission (SEC) O That bankers, lawyers, and other third parties who did not directly mislead investors but worked with corporations that did cannot be sued by shareholders but can be subject to criminal prosecutions and enforcement actions by the Securities and Exchange Commission (SEC)