Which of the Following Is Generally NOT True and an Advantage

question 10

Multiple Choice

Which of the following is generally NOT true and an advantage of going public?

• A) Facilitates stockholder diversification.
• B) Increases the liquidity of the firm's stock.
• C) Makes it easier to obtain new equity capital.
• D) Establishes a market value for the firm.
• E) Makes it easier for owner-managers to engage in profitable self- dealings.

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Definitions:

Borderline

Often referring to Borderline Personality Disorder, a mental health condition characterized by unstable moods, behaviors, and relationships.

Paranoid

Pertaining to a state characterized by persistent delusions of persecution or grandeur, often without sufficient basis, typically seen in paranoid schizophrenia or paranoid personality disorder.

Schizoid

A personality disorder characterized by a long-standing pattern of detachment from social relationships and a narrow range of emotional expression.

Personality Disorder

A type of mental disorder involving enduring patterns of behavior, cognition, and inner experience that deviate significantly from the expectations of the culture, are pervasive and inflexible, start in adolescence or early adulthood, are stable over time, and lead to distress or impairment.