Which statement best describes an accredited investor by assets test?

• A. Individual with net worth over $1 million (excluding primary residence)
• B. Individual with net worth under $100,000
• C. Charitable organization with $2 million assets
• D. An employee with assets under $1 million

Answer: (A)

The statement tests the assets (net worth) criterion for being an accredited investor. For an individual to qualify by assets, they must have a net worth greater than $1 million, excluding the primary residence. So, someone with net worth over $1 million (not counting their home) meets this test and is considered an accredited investor for private placements under Regulation D.

The other options don’t fit: a charitable organization with $2 million in assets generally wouldn’t meet the typical entity threshold (often around $5 million, or other qualifying categories), an employee with assets under $1 million doesn’t reach the threshold, and an individual with net worth under $100,000 clearly does not.