Which of the Following Statements Is FALSE

question 50

Multiple Choice

Which of the following statements is FALSE?

• A) Secondary shares are shares sold by existing shareholders, including the company's founder.
• B) If a firm's management is concerned that its equity may be underpriced in the market, by using a rights offering the firm can continue to issue equity without imposing a loss on its current shareholders.
• C) In Australia, most SEOs are cash offers.
• D) In a rights offer, the firm offers the new shares only to existing shareholders.

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Definitions:

Ideals and Morals

Principles or standards of behavior considered desirable or ethically good by a society or individual.

Division of Labor

The allocation of different tasks and responsibilities to different people or groups, often leading to specialization in certain skills or professions.

Karl Marx

A philosopher and economist known for his critical analysis of capitalism and his theory of historical materialism, which centers on the roles of class struggle and economic production in social change.

Emile Durkheim

A French sociologist and one of the founding figures of sociology, known for his work on social cohesion, the division of labor, and the concept of social facts.