Which of the Statements Below Is TRUE

question 60

Multiple Choice

Which of the statements below is TRUE?

• A) Buying of shares is the selling of ownership in the company.
• B) A company is said to go "private" when it opens up its ownership structure to the general public through the sale of common stock.
• C) Private companies choose to sell stock to attract permanent financing through equity ownership of the company.
• D) Most companies have the resident expertise to complete an initial public offering (IPO), or first public equity issue.

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Definitions:

Inflation

The rate at which the general level of prices for goods and services is rising, eroding purchasing power.

Gross Domestic Product

A measure of the economic output of a country, calculated as the total value of all goods and services produced over a specific time period.

Human Sustainability

The practice of ensuring that actions and policies today do not diminish the health, welfare, and opportunities for future generations of humans.

Organizational Stakeholders

Individuals or groups who have an interest or stake in the success and operations of an organization, such as employees, customers, investors, and suppliers.