Which of the Following Statements Is FALSE

question 22

Multiple Choice

Which of the following statements is FALSE?

• A)More often than not,firms return to the equity markets and offer new shares for sale,a type of offering called a seasoned equity offering (SEO).
• B)Usually,profitable growth opportunities occur throughout the life of the firm,and in some cases,it is not feasible to finance these opportunities out of retained earnings.
• C)When a firm issues stock using an SEO,it follows many of the same steps as for an IPO.The main difference is that a market price for the stock already exists,so the price-setting process is not necessary.
• D)A firm's need for outside capital usually ends at the IPO.

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Definitions:

Sales Forecast

The quantity of products a business plans to sell during a future time period.

Market Segmentation

Breaking down populations of people into groups, or target markets.

Marketing Strategy

A business's overall game plan for reaching prospective consumers and turning them into customers of their products or services.

Niche Marketing

Segmenting populations of people into smaller target markets.