When They Need to Raise Funds to Finance Continuing Growth

question 53

Multiple Choice

When they need to raise funds to finance continuing growth, what do many private companies use to raise capital?

• A) reverse public offering
• B) private share placement
• C) stock sale financing
• D) initial public offering

---

Definitions:

Design Defect

A flaw in the design of a product that makes it unsafe or unfit for its intended use.

Consumer Expectations Test

A legal standard used to determine product liability based on whether a product meets the ordinary expectations of a consumer.

Feasible Alternatives Test

The feasible alternatives test is a legal or regulatory principle that requires the consideration of practical and possible options before proceeding with actions that may have significant effects or risks.

Product Liability Law

The legal rules concerning who is responsible for defective or dangerous products sold to consumers.