When Compared with Selling Stocks to the Public, a Private

question 122

Multiple Choice

When compared with selling stocks to the public, a private placement has

• A) more government regulations.
• B) higher costs.
• C) guaranteed repayment provisions that can be enforced.
• D) lower costs.
• E) more legal requirements.

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Definitions:

IFRS

International Financial Reporting Standards, which are a set of accounting standards developed by the International Accounting Standards Board (IASB) for global use in financial reporting.

ASPE

The Accounting Standards for Private Enterprises (ASPE) is a set of accounting standards for private companies in Canada, providing guidelines on financial reporting practices.

Accrual Basis

An accounting method where revenues are recorded when earned, and expenses are recorded when incurred, regardless of when cash is exchanged.

Net Income

The net income of a business once all costs and taxes are subtracted from its total earnings.