PRSA APR QUESTIONS AND ANSWERS

PRSA APR QUESTIONS AND ANSWERS Universe - CORRECT ANSWER-The number of possible respondents available to draw survey sample from Representative sample - CORRECT ANSWER-Number needed to be representative of the universe. Any universe that is 100,000 or more requires a sample of 384 10-K - CORRECT ANSWER-Annual Report must file 60 days after close of companies fiscal year 10-Q - CORRECT ANSWER-Quarterly financial Report containing unaudited data-filed 35 days after close of first three fiscal quarters 95% Confidence level - CORRECT ANSWER-If the same survey were given repeatedly 95% of the time the results would be the same, falling within the same margin of error 8-K - CORRECT ANSWER-information that needs to be public documented through the SEC-a news release can be qualified. Can triggered by a reporter questions for information that has not been issued publicly. Publically traded organization and/or regulated. Mnemonic: "kant" wait-information Margin of error - CORRECT ANSWER-The range, plus or minus, within which results can vary (the larger the sample the lower the margin of error) Proxy Statement (Form Def 14A) - CORRECT ANSWER-invitation or agenda at for shareholders to advertise the annual meeting. Can cover-proposals for new board members, directors or executives' salaries, bonus and option plans for directors, and declarations by company management. Benchmark Survey - CORRECT ANSWER-Survey that is taken of a large target audience prior to a campaign. Research after campaign can be measured against this Cluster Sample - CORRECT ANSWER-People who are grouped or clustered by something they have in common Content analysis - CORRECT ANSWER-Study of publications, print and electronic media reports to measure and evaluate news coverage of an organization, its people or activities. Attempt to objectively code and describe the content of communication. Depth interviews - CORRECT ANSWER-One-on-one interviews with key respondents Focus group - CORRECT ANSWER-Informal give-and-take sessions in a controlled environment with a small group of people.(Qualitative) Formal methods - CORRECT ANSWER-Research that includes the systematic gathering of scientifically measurable data from representative. samples. Mail survey, telephone survey (Quantitative) Informal methods - CORRECT ANSWER-Exploratory research that is not gathered from scientifically represented samples (focus groups, key influencers, letters/complaints received Regulation Fair Disclosure (2000) - CORRECT ANSWER-all publicly traded companies disclose material information to all investors at the same time (at all levels) Insider Trading Study (1963) - CORRECT ANSWER-Encourages timely disclosure of "material information" Rule 5c (Security Act of 1933) - CORRECT ANSWER-Gag period-registration of securities and led to embargo of publicity materials during a specific timeframe (90 days from registration becomes effective) Think-high 5 for keeping your mouth shut ;) Sarbanes Oxley (2002) - CORRECT ANSWER-Corporate auditing accountability, responsibility, and transparency. mandated a number of reforms to enhance corporate responsibility, enhance financial disclosures and combat corporate and accounting fraud, and created the "Public Company Accounting Oversight Board," to oversee the activities of the auditing profession. Think Oxley-sounds like Auditing/Accounting Fraud Securities Act of 1933 - CORRECT ANSWER-"1. require that investors receive financial and other significant information concerning securities being offered for public sale; and 2. prohibit deceit, misrepresentations, and other fraud in the sale of securities. Mnemonic-1933-investors need info before they can public sale-no lying of fraud." - CORRECT ANSWERSection 14 of Act of 1934 - CORRECT ANSWER-Solicitation of proxies between official statement and annual meeting. Mnemonic -14 goes with 34 (send proxies to all 14 shareholders?) Lobbying act of 1913 - CORRECT ANSWER-Lobbyists must register with the clerk of the house or secretary of the senate between the first and 10th day of the quarter- includes $ received, names of publications that they published articles/editorials. Violation=$5,000 fine and up to 12 months imprisonment Anti-Trust - CORRECT ANSWER-Sherman/Clayton Act- Illegal to engage in activity that ruins competition. Think Anti-trust=Anti-competition Securities Act of 1934 - CORRECT ANSWER-Created the SEC and gives them the power to register, regulate, and oversee brokerage firms, transfer agents, and clearing agencies as well as the nation's securities self regulatory organizations (SROs) and various stock exchanges.Think-SEC can RROA Register-Regulate-Oversee Agencies/Agents Intercept Interviews - CORRECT ANSWER-Interviews conducted by stopping respondents in a public place, such as a shopping mall Registering as a foreign agent - CORRECT ANSWER-If you represent a foreign government you must register under US government-Originated with Carl Byoir and when he represented the Nazi's Formal Research Examples - CORRECT ANSWER-Systematic formal questionnaires, "statistically representative" Informal Research Examples - CORRECT ANSWER-Focus groups, call-in feedback systems, and online sources Judgmental or purposive Sample - CORRECT ANSWER-A sample based on your best judgment to determine what would be representive (i.e. women 65+) Surveys - CORRECT ANSWER-Systematic information gathered on formal questionnaires to gather information Leading Question - CORRECT ANSWER-A question that leads a respondent to answer in a particular way Open-end Question - CORRECT ANSWER-Questions that allow respondent to answer in their own words rather than choosing from a particular selection Population (same as Universe) - CORRECT ANSWER-The individuals whose opinions are sought in a survey Rule 10 b-5 (Security Exchange Act of 1934) - CORRECT ANSWER-FRAUD. It is your legal responsibility to info is accurate and complete. Think-It would be fraud to say 10 comes "b" fore 5 Primary Research - CORRECT ANSWER-Research you conduct yourself