Which of the Following Statements Is FALSE

question 30

Multiple Choice

Which of the following statements is FALSE?

• A)Once a company goes public,it must satisfy all of the requirements of public companies.
• B)Organizations such as the Securities and Exchange Commission (SEC),the securities exchanges (including the New York Stock Exchange and the NASDAQ),and Congress (through the Sarbanes-Oxley Act of 2002)adopted new standards that focused on more thorough financial disclosure,greater accountability,and more stringent requirements for the board of directors.
• C)The major advantage of undertaking an IPO is also one of the major disadvantages of an IPO: When investors diversify their holdings,the equity holders of the corporation become more concentrated.
• D)Several high-profile corporate scandals during the early part of the twenty-first century prompted tougher regulations designed to address corporate abuses.

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Definitions:

Delegation of Duties

Delegation of duties involves assigning responsibility and authority from one person to another for the completion of specific tasks or roles.

Assigns Contract

Refers to the transfer of rights or duties under a contract from one party to another.

Personal Skill

An individual's ability or expertise in a specific area that contributes to their effectiveness in personal or professional settings.

Delegatee's Performance

The execution of delegated tasks or duties by the appointed individual or entity.