Which of the Following Statements Is Correct

question 25

Multiple Choice

Which of the following statements is correct?

• A) The SEC must approve the price at which a stock is to be offered to the public when a company "goes public."
• B) If a company's stock is listed,then it trades in the over-the-counter (OTC)market.
• C) If the "preemptive right" exists in a company's charter,then the holders of its Class A shares have the right to receive a specified amount of dividends before dividends can be paid on Class B shares.
• D) A "prospectus" is a document which describes a company and the securities it plans to offer,and the prospectus generally must be approved by the SEC before a public offering of new securities can be made.
• E) The decision to list a company's stock generally is more important to the company than the decision to go public,i.e. ,listing has a larger impact on the way the firm is operated than does going public.

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Definitions:

Establishing Objectives

The process of defining specific, measurable, achievable, relevant, and time-bound goals that an organization or individual aims to achieve.

Measuring Actual Performance

The process of evaluating the real outcomes of activities or processes against expected or planned outcomes.

Management by Exception

A management style in which the manager intervenes only when performance deviates significantly from standards, allowing for more autonomous operation of processes.

Managerial Attention

The focus and prioritization that managers give to certain issues, tasks, or information, which can significantly impact decision-making and leadership.