The Primary Reason for an Underwriters' Syndication Is To

question 44

Multiple Choice

The primary reason for an underwriters' syndication is to:

• A)Monitor the actions of the different underwriters
• B)Reduce the risk of selling a large issue
• C)Increase the size of the spread
• D)Avoid the scrutiny of the Securities and Exchange Commission

---

Definitions:

Equivalent Units

A concept used in cost accounting to express the amount of materials, labor, and overhead in partially finished goods in terms of complete units of production.

Assembly Department

A section of a manufacturing plant where parts are assembled to create the end product.

Transferred

The act of moving goods, costs, or funds from one account, location, or product to another.

Weighted-Average Method

A costing method where the cost of inventory items is determined based on the weighted average of the costs of similar items at the beginning of a period and the costs of items acquired during that period.