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Simple English definitions for legal terms

risk-capital test

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A quick definition of risk-capital test:

A risk-capital test is a way to determine if a transaction involves the sale of a security and is subject to securities laws. It is based on whether the seller is asking for money to develop a business venture. Risk distribution is how a legal system decides who should bear the risk of harm in a situation.

A more thorough explanation:

The risk-capital test is a method used to determine whether a transaction involves the sale of a security and is therefore subject to securities laws. This test is based on whether the seller is seeking risk capital to develop a business venture.

If a company is seeking investors to provide funding for a new business venture, the risk-capital test would be used to determine whether the transaction involves the sale of a security. If the company is soliciting risk capital, then the transaction would be subject to securities laws.

Risk distribution is the way in which a legal system assigns responsibility for harm between the person who suffers the loss and the person who caused it.

If a person is injured in a car accident, the legal system will determine who is responsible for the harm and assign liability accordingly. This may involve assigning a percentage of fault to each party involved in the accident, or it may involve holding one party entirely responsible for the harm.

These examples illustrate how the risk-capital test and risk distribution are used to allocate risk and responsibility in different situations.

risk capital | risk factor

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Dkk
19:44
@2big2fail: looks like an Aristotle wannabe.
2big2fail
19:44
whatever. im just reading the financial times
1a2b3c4d26z
19:44
ft goated
concorde
19:45
I hate Dostoevsky
2big2fail
19:45
studying cloud computing, not the cloud of unknowing
babycat
19:45
@1a2b3c4d26z: serotonin is my fave houellebecq
1a2b3c4d26z
19:45
chefs kiss mwah
2big2fail
19:45
i honestly dont understand why people like houellebecq
1a2b3c4d26z
19:45
I'll try to describe how I feel about him
2big2fail
19:46
my favorite french authors are balzac and proust, as basic as that is
1a2b3c4d26z
19:46
basically I read his book and the whole time I read it I liked it so I finished it and I said hm I liked that book written by the author houellebecq
1a2b3c4d26z
19:46
balzac hahaha
2big2fail
19:46
lost illusions is goated
does it take longer to hear back if u applied to scholarships for schools like ucla???
Dkk
19:47
For Houellebecq I have only read https://en.wikipedia.org/wiki/Atomised
JumpySubsequentDolphin
19:47
you guys should read averroes
also do we think ucla wont do a wave tmw cuz they did a tiny one tonight, can schools do 2 days ina. row
JumpySubsequentDolphin
19:47
perhaps read the incoherence of philosophy first and then read averroes’ response: “the incoherence of the incoherence”
2big2fail
19:47
@Dkk: i read that one. just thought it was boring and not really in touch with reality
JumpySubsequentDolphin
19:47
SPLITTY usually they’re Friday!
Dkk
19:48
@2big2fail: I agree.
HUH then what the heck is this wave tonight ab are they tryna give us an attack???
babycat
19:49
@texaslawhopefully: don’t really remember it but my ibooks library says i read it in 2020. that whole year is a haze.
Dkk
19:51
My favorite book though, The Good Morty: https://archive.org/details/TheGoodMorty
Dkk
20:09
Man, I guess nobody like The Good Morty
2big2fail
20:10
didnt even look at it
Dkk
20:12
R.I.P.
Dkk
20:13
https://www.youtube.com/watch?app=desktop&v=0uzynaLi4Tg&t=0s such a minor joke, so good to me.
babycat
20:16
I hate The Good Morty
Dkk
20:21
I hate him too. So lame.
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