Which of the Following Statements Is Correct

question 47

Multiple Choice

Which of the following statements is correct?

• A) One danger a family-owned business faces when it goes public is the loss of absolute voting control of the company,because there is no way to keep new stockholders from voting.
• B) The market is less active for small companies' shares,so these stocks must be included on the SEC's list in order to inform investors of their existence.Therefore,"listed shares" as the term is generally used refers to shares of smaller as opposed to larger companies.
• C) Before a company can offer a new issue of common stock to the public,it must get approval from the SEC for the price at which the stock can be sold.If the SEC thinks the proposed price is too high,then the company's prospectus is rejected and the stock cannot be sold.
• D) The preemptive right refers to stockholders' right to elect a company's board of directors.
• E) Each of the above statements is false.

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Definitions:

Performance Avoidance Orientation

A mindset aimed at avoiding failure and negative judgments rather than achieving success, which can impact motivation and performance.

Team Norms

are the shared expectations and rules that guide the behavior of team members within a group.

Expected Behavior

The behavior that individuals or groups are anticipated to exhibit based on societal norms, rules, or standards.

Specific Time

A clearly defined or fixed moment or period on a timeline.