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:

Organizational Mission

The organizational mission is a statement that outlines an organization's purpose, core values, and fundamental goals, guiding its strategies and operations.

Shared Meanings

Common understandings or interpretations among a group or culture about symbols, language, or behaviors, facilitating communication and cohesion.

Organizational Culture

The set of shared beliefs, values, norms, and practices that influences the behavior of members of an organization.

Management Philosophy

A belief system or set of principles that influence how an organization is managed and how it makes decisions.