Which of the Following Is Generally NOT True and an Advantage

question 8

Multiple Choice

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

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

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Definitions:

Content Validity

A measure of how well test items represent the domain they're intended to assess, ensuring the test is comprehensive and relevant.

Face Validity

Superficial observation that a test appears to cover the correct content or domain. This is not an actual form of validity since the appearance of test items may or may not accurately reflect the domain.

Pilot Study

A small-scale preliminary study conducted to evaluate feasibility, time, cost, risk, and adverse events, used to improve the design of a future full-scale research project.

Cross-Cultural Fairness

In assessment or testing, the principle of ensuring that tools and practices are equitable and do not favor one cultural group over others.