A Common Problem for Closely Held Corporations Is

question 48

Multiple Choice

A common problem for closely held corporations is:

• A) lack of access to substantial amounts of capital.
• B) that shareholders receive only one vote each.
• C) the separation of ownership and management.
• D) an abundance of agency problems.

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Definitions:

Pumping and Dumping

Refers to the fraudulent practice of artificially inflating the price of a stock through false or misleading statements, in order to sell the stock at the inflated price.

Artificially Increases

Refers to the process of increasing a value or quantity through unnatural or synthetic means, often in a context that suggests manipulation or deceit.

Quick Profit

Gains realized from the rapid buying and selling of securities or other assets, aiming for short-term financial gain.

Debentures

A type of long-term debt instrument that is not secured by physical assets or collateral.