Which of the Following Is Generally NOT True and an Advantage

question 8

Multiple Choice

Which of the following is generally NOT true and an advantage of going public?

• A) Increases the liquidity of the firm's stock.
• B) Makes it easier to obtain new equity capital.
• C) Establishes a market value for the firm.
• D) Makes it easier for owner-managers to engage in profitable self-dealings.
• E) Facilitates stockholder diversification.

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Definitions:

Corporate Intelligence

The gathering and analysis of information on competitors, market conditions, and internal operations to make informed business decisions.

Misuse

Incorrect, improper, or unlawful use of something that can lead to undesirable outcomes or harm.

Secret Information

Confidential or proprietary knowledge not disclosed or made available to the general public.

War Metaphors

Linguistic expressions that apply terms and concepts from military conflict to non-military situations, often to describe a business competition or personal struggle.