Which of the Following Is True of an Initial Public

question 1

Multiple Choice

Which of the following is true of an initial public offering (IPO) ?

• A) Buying an IPO stock is less risky than purchasing established companies in the secondary market.
• B) An IPO stock can be sold later in the primary market.
• C) An IPO's stock price may rise or fall rapidly on the first day.
• D) An IPO represents a company that was just created within the last month.

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Definitions:

Fredrick Taylor

Known as the father of scientific management, he introduced efficiency techniques and principles in the management of work and workers.

Job Enrichment

A method of motivating employees by giving them more responsibility and variety in their jobs.

Established Client Relationships

The development of long-term connections and rapport with clients, characterized by trust and mutual understanding.

Overdue Accounts

Accounts that have not been paid by the due date, often resulting in penalties.