Which of the Following Statements Is NOT CORRECT

question 16

Multiple Choice

Which of the following statements is NOT CORRECT?

• A) When a corporation's shares are owned by a few individuals who own most of the stock or are part of the firm's management, we say that the firm is "closely, or privately, held."
• B) "Going public" establishes a firm's true intrinsic value and ensures that a liquid market will always exist for the firm's shares.
• C) Publicly owned companies have sold shares to investors who are not associated with management, and they must register with and report to a regulatory agency such as the SEC.
• D) When stock in a closely held corporation is offered to the public for the first time, the transaction is called "going public," and the market for such stock is called the new issue market.
• E) It is possible for a firm to go public and yet not raise any additional new capital.

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Definitions:

Bladder

A muscular organ in the pelvis that holds urine until it is excreted.

Body

The physical structure of a person or an organism, including the bones, muscles, skin, and vital organs, encompassing both the visible external parts and internal components.

Secretion

The process by which substances are produced and discharged from a cell, gland, or organ for a particular function in the organism or for excretion.

Nephron

The functional unit of the kidney, responsible for filtering and excreting waste products from the blood.