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.

---

Definitions:

Outstanding Reputation

The exceptional recognition an individual or organization has earned for their notable achievements, character, or quality.

Career Goals

Objectives or milestones that individuals aim to achieve in their professional lives, often involving advancements in job position, skill level, or achieving certain accomplishments.

Internal Changes

Adjustments or transformations within an organization, such as restructuring, policy updates, or shifts in company culture, aimed at improving efficiency or aligning with strategic priorities.

Boss Younger

The situation where an employee's direct supervisor is younger than the employee.