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Simple English definitions for legal terms

capital-risk test

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A quick definition of capital-risk test:

Capital-Risk Test: A way to decide if a business deal is subject to securities laws. If a franchisee gives a lot of money to start a franchise, then it is considered an investment contract and must follow securities laws.

A more thorough explanation:

Definition: The capital-risk test is a method used to determine if a transaction is considered an investment contract and therefore subject to securities laws. This test is applied when a franchisee provides a substantial portion of the capital used by a franchiser to start its operations.

Example: Let's say that a franchiser needs $1 million to start a new business. The franchiser finds a franchisee who is willing to invest $800,000 in exchange for a share of the profits. In this case, the capital-risk test would likely classify this transaction as an investment contract subject to securities laws.

Explanation: The example illustrates how the capital-risk test is applied. If a franchisee provides a significant amount of the capital needed to start a business, then the transaction is considered an investment contract. This means that the franchisee is investing money with the expectation of receiving a return on their investment, which is subject to securities laws.

capital return | capital-stock tax

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I got one answer so far from Mizzou and I was WL'ed but hey it's not the end it's just the beginning
that was Friday
WorthlessAttractiveZombie
14:26
keep swinging until you hear a bell
14:27
im from the future
14:27
kamala wins
14:27
276-262
I think she will too lol
WorthlessAttractiveZombie
14:27
since you're from the future, will fordham release today
14:28
no
WorthlessAttractiveZombie
14:28
fuck alright
14:28
not this week
14:28
dont even get ur hopes up u fool im from the year 2076
TheMidwestMonger
14:28
I'm terrified with how the world will react to Trump losing
WorthlessAttractiveZombie
14:28
damn, next question: should i eat the cheese that's been in my fridge for 3 weeks?
14:28
im pretty sure the world is gonna rejoice??
14:29
yes it is the key to immortality
TheMidwestMonger
14:29
Sorry, I meant the far right and their reaction lol
I live in alabama if she wins it's gonna be crazy here
14:30
same as last time whine that it was rigged go to court lose every time
good thing im bouncing next year
oh yeah
JumpySubsequentDolphin
14:31
why won’t ASU send my scholly info ☹️
WorthlessAttractiveZombie
14:31
they sent mine about 3 hours after i got the initial acceptance video thing
I just wanna hear back from them
14:31
the adcomm office got there at 10 am took a two hour lunch at 12 and left at 3:30 -- trust me im from the year 2076
lol
WorthlessAttractiveZombie
14:32
lavender, they should usually get back within a month of going complete
okie doke, thank u!
JumpySubsequentDolphin
14:35
@WorthlessAttractiveZombie: good to know! I thought I missed SMTH bc someone told me they got their admissions packet before the video lol
BulbasaurNoLikeCardio
14:35
I got school that have me under review for over a month... just hope it puts me in their first wave of As
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