Which of the Following Statements Is FALSE

question 25

Multiple Choice

Which of the following statements is FALSE?

• A) Several high profile corporate scandals during the early part of the twenty-first century prompted tougher regulations designed to address corporate abuses.
• B) 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.
• C) Once a company goes public, it must satisfy all of the requirements of public companies.
• D) Organisations such as the Australian Securities and Investments Commission (ASIC), the Australian Securities Exchanges (ASX), and other regulatory authorities adopted new standards that focused on more thorough financial disclosure, greater accountability, and more stringent requirements for the board of directors.

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Definitions:

Master Account

An overarching account that holds multiple sub-accounts, often used by businesses to manage various funds or investments.

Demands for Payment

Requests or invoices issued by creditors or suppliers for the settlement of outstanding debts.

Miller-Orr Model

A financial model used to manage cash flows and determine the optimal cash balance levels for a company, focusing on cost minimization.

Lower Limit

The minimum value in a range of acceptable or possible values, often used in statistics and quality control.