Which of the Following Statements Is INCORRECT

question 43

Multiple Choice

Which of the following statements is INCORRECT?

• A) When a corporation's shares are owned by a few individuals who own most of the stock or are part of the firm's management, we say that the firm is "closely, or privately, held."
• B) "Going public" establishes a firm's true intrinsic value and ensures that a liquid market will always exist for the firm's shares.
• C) When stock in a closely held corporation is offered to the public for the first time, the transaction is called "going public," and the market for such stock is called the new issue market.
• D) It is possible for a firm to go public and yet not raise any additional new capital.

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Definitions:

Thrombocytes

Thrombocytes, also known as platelets, are blood cells involved in hemostasis, leading to the formation of blood clots in response to bleeding.

Immunoglobulin

A type of protein functioning as an antibody, produced by the immune system to combat pathogens.

Antigen

A substance that induces an immune response in the body, especially the production of antibodies.

Plasma Membrane

The cell membrane, which encloses every cell, regulates the passage of materials between the cell's interior and its external surroundings.