Which of the Following Is Generally NOT True and an Advantage

question 68

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) establishes a market value for the firm
• D) makes it easier for owner-managers to engage in profitable self-dealings

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Definitions:

Tax Revenue

The financial income governments receive through taxing.

Administrative Burden

The costs associated with regulatory compliance, paperwork, and other bureaucratic procedures that organizations must bear.

Inefficiency

A situation where resources are not used in the most productive way, leading to waste or a loss of potential value in an economy or system.

Individual Income Taxes

Taxes levied on the income of individuals, with the tax rate often varying according to income levels.