John Smith,one of Three Managers at BSG Labs,drafted a Policy

question 23

Multiple Choice

John Smith,one of three managers at BSG Labs,drafted a policy that would allow his department to do more testing in his lab.This policy included the times for regular collection as well as a new process for emergency laboratory testing.The policy and procedures were never followed.The reason was that:

• A) the policy was too lengthy and inundated readers with too much detail.
• B) the policy made decisions for other departments in the company.
• C) the staff did not believe that the new policy would be effective.
• D) testing should not be done in the lab.

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Definitions:

Security Offering

The process of making new shares of a company available for sale to the public or specific investors, often to raise capital.

Shares Outstanding

The total number of shares of a corporation's stock that are owned by shareholders, including restricted shares.

Security

A financial instrument that represents an ownership position in a publicly-traded corporation (stock), a creditor relationship with a governmental body or a corporation (bond), or rights to ownership as represented by an option.

Warrants

Financial derivatives that give the holder the right, but not the obligation, to buy or sell a security at a specific price before a certain date.