Which of the Following Is NOT a Significant Result When

question 46

Multiple Choice

Which of the following is NOT a significant result when a firm begins its initial sale of shares to the public in the United States?

• A)The firm will now have to disclose a sizeable degree of financial and operational detail
• B)The firm will now have to publish financial and operational detail once a year
• C)The firm will now have to comply with Securities and Exchange Commission rules
• D)The firm will now have to comply with all the specific operating and reporting requirements of the specific exchange on which it is traded
• E)The firm will now have increased regulatory requirements

---

Definitions:

Duty To Warn

The legal obligation to inform others of a known danger or risk to prevent harm.

High Blood Pressure

A medical condition in which the force of the blood against the artery walls is too high, often leading to health problems.

Over-The-Counter Drug

Medications that are legally sold directly to consumers without a prescription from a healthcare professional.

Risk-Utility Test

A legal principle used to determine if the design of a product is defective by weighing the product's risk against its utility or benefit.