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:

Distance Learning Technology

Technologies designed to facilitate learning for students who are not physically present in a traditional educational setting.

Buying Center

A team within a company that is in charge of deciding what to buy.

Whole Grain Flour

A type of flour that includes all parts of the grain kernel, such as the bran, germ, and endosperm, offering more nutrients than refined flours.

Modified Rebuy

A buying situation in which an organization re-evaluates options for repurchasing a good or service.