Series 79: Chapter 4 Practice Question Answers

Chapter 4 Practice Question Answers

1. 1. Answer: D. Bring-down due diligence occurs just before an offering is priced and the registration statement is finalized. In bring-down due diligence, a company’s investment bankers and other advisors confirm that the information previously gathered about the company is still correct.
2. 2. Answer: C. Both the sell-side advisor and the buy-side advisor typically perform due diligence on the seller and coordinate site visits, so answer choices A and D are incorrect. The buy-side advisor typically evaluates the target’s leadership, so choice B is incorrect. The sell-side advisor, not the buy-side advisor, is charged with managing and monitoring access to the data room, so C is the correct answer.
3. 3. Answer: A. Answer choices B, C, and D each describe a “relevant circumstance” under Rule 176. Answer choice A, however