Which of the Following Statements Is NOT CORRECT

question 18

Multiple Choice

Which of the following statements is NOT CORRECT?

• A) When a corporation's shares are owned by a few individuals,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) The stock of publicly owned companies must generally be registered with and reported to a regulatory agency such as the SEC.
• D) When stock in a closely held corporation is offered to the public for the first time,the transaction is called "going public,or an IPO," and the market for such stock is called the new issue or IPO market.
• E) It is possible for a firm to go public and yet not raise any additional new capital for the firm itself.

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Definitions:

Force-Field Analysis

A framework for analyzing a problem that seeks to identify all the relevant factors and stakeholders that are acting to either sustain the current state or to move away from the current state.

Organizational Analysis

The process of reviewing the structure, operations, and performance of an organization to identify areas of improvement.

Current State

The existing conditions or situation of an organization, system, or process at a given point in time.

Unfreezing Process

The initial stage of change in an organization, aiming to dismantle existing mindsets and strategies.