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:

Cystic Fibrosis

A genetic disorder that affects the respiratory, digestive, and reproductive systems, characterized by the production of abnormally thick and sticky mucus, leading to severe respiratory and digestive problems.

Mucus

A thick and slippery secretion produced by mucous membranes and glands, used to protect, lubricate, and filter in various organs and cavities within the body.

Passageways

Routes or paths that allow for passage or travel from one place to another.

Linkage Group

All of the genes on a chromosome.