Which of the Following Statements Is Most CORRECT

question 11

Multiple Choice

Which of the following statements is most CORRECT?

• A) In a private placement, securities are sold to private (individual) investors rather than to institutions.
• B) Private placements occur most frequently with stocks, but bonds can also be sold in a private placement.
• C) Private placements are convenient for issuers, but the convenience is offset by higher flotation costs.
• D) The SEC requires that all private placements be handled by a registered investment banker.
• E) Private placements can generally bring in funds faster than is the case with public offerings.

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Definitions:

Purchases

The total amount of goods and materials acquired by a business for the purpose of resale or production during a specific accounting period.

Cost of Goods Sold

The costs directly linked to producing a company’s sold goods, encompassing labor and materials.

Periodic Inventory System

An inventory system where updates to the inventory records are made periodically, often at the end of an accounting period, rather than after each transaction.

Cost of Goods Sold

The direct costs tied to the production of goods sold by a company, including materials and labor.