Which One of These Is Not a Reason Given for Issuing

question 72

Multiple Choice

Which one of these is not a reason given for issuing shares without a rights offering?

• A)The risk of the subscription price exceeding the market price is significant.
• B)Underwriters provide a wider distribution of shares than would be possible with a rights offering.
• C)Rights must be exercised by their original owner or forfeited.
• D)Underwritten issues provide funds faster than rights offerings do.
• E)Investment bankers provide valuable advice.

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Definitions:

Organizational Behaviour

The study of how individuals and groups interact within organizations and how these interactions affect performance, motivation, job satisfaction, and leadership.

Prediction and Explanation

The process of forecasting future events or behaviors and providing reasons or causes for occurrences.

Managerial Task

Managerial tasks refer to the responsibilities and duties performed by managers, including planning, organizing, leading, and controlling to achieve organizational goals.

Field of Organizational Behaviour

A study area focused on understanding, explaining, and improving the attitudes and behaviors of individuals and groups in organizations.