Fact Pattern 22-2 Alice,along with Her General Partner Greg,owns Several Businesses.She Is Very
Fact pattern 22-2
Alice,along with her general partner Greg,owns several businesses.She is very interested in salt water aquariums and decides that a good venture for the partnership is the development of a business to raise tropical fish for that environment.She plans to issue stock to start a business raising fish for that environment with the idea that she and Greg will purchase a majority of the stock.She has a friend,Tony,who is a plastic surgeon with a good practice who has expressed interest in the venture because he believes that the presence of fish in waiting rooms reduces anxiety and encourages patients to spend more money.She does not want to go to the expense and trouble of a formal registration under the 1933 Act and seeks advice on how to avoid that process.
-Refer to fact pattern 22-2.As far as Greg is concerned,which of the following is true?
A) Selling to Greg would not trigger registration requirements because his status as Alice's general partner results in him being considered an accredited investor.
B) Selling to Greg would not trigger registration requirements so long as he purchases at least 10% of outstanding stock.
C) Selling stock to Greg would not trigger registration requirements because he is a tombstone investor.
D) Selling stock to Greg would trigger registration requirements.
Correct Answer:
Verified
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