The Disclosure Requirements for Private Entities Are Usually Less Extensive

question 112

Multiple Choice

The disclosure requirements for private entities are usually less extensive as compared to those for public entities because

• A) investors in private entities are expected to have less information about the company.
• B) investors in private entities are expected to have more information about the company.
• C) investors in private entities tend to be more sophisticated.
• D) investors in private entities tend to be less sophisticated.

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Definitions:

Intra-Company

Pertaining to activities or transactions occurring within the same company, often involving different departments or divisions.

Professionalism

Entails the conduct, aims, or qualities that characterize or mark a profession or a professional person.

Labeling

The process of assigning a descriptor or category to individuals or groups which can influence how they are perceived and act.

Power Play

A strategic move or action taken by an individual or group to consolidate, assert, or increase their influence or control over others.