Scissorwire Inc sells shares of its stock to the public, with each share valued at $16. After a year, the company incurs a loss and the price of each share drops to $5
The company reveals that it had deliberately not registered with the SEC before going public and that it has no money to pay the investors. Which of the following holds well in this context?
A) Scissorwire Inc. can register with the SEC at any point after the dip in shares.
B) The U.S. government can file a criminal lawsuit against Scissorwire Inc. to seek criminal penalties.
C) The investors have been negligent in not verifying registration before purchase of shares and cannot rescind their purchase.
D) Scissorwire Inc. is liable for the violation of the Securities Exchange Act of 1934.
B
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In a large company, the person who is responsible for comparing cash and the bank balance is the ________
A) CEO B) CFO C) controller D) treasurer
Which of the following is described as a system where customers send their checks directly to a post office box that belongs to a bank?
A) an encryption system B) an imprest system C) a lock-box system D) a firewall system