Which of the Following Statements Is False

question 76

Multiple Choice

Which of the following statements is false?

• A) When a corporation's shares are owned by a few individuals who are associated with or are the firm's management, we say that the stock is "closely held."
• B) A publicly owned corporation is simply a company whose shares are held by the investing public, which may include other corporations and institutions as well as individuals.
• C) Going public establishes a true market value for the firm and ensures that a liquid market will always exist for the firm's shares.
• 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:

Babbling

The sounds made by babies before they develop actual language, consisting of repetitive syllables that do not have understandable meaning.

Sign Language

A visual means of communication using gestures, facial expressions, and body language, often used by deaf or hard-of-hearing individuals.

Holophrases

Simple, single-word sentences used by infants that convey a complete thought or request.

Recognizable Words

Words that are identifiable and can be understood in spoken or written form by individuals based on their knowledge of the language.