Which of the Following Statements Is NOT Correct

question 21

Multiple Choice

Which of the following statements is NOT correct?

• A)When a corporation's shares are owned by a few individuals and are not traded on public markets, we say that the firm is "closely, or privately, held."
• B)"Going public" establishes a firm's true intrinsic value, and it also ensures that a highly liquid market will always exist for the firm's shares.
• C)When stock in a closely held corporation is offered to the public for the first time, the transaction is called "going public," and the market for such stock is called the new issue market.
• D)Publicly owned companies have shares owned by investors who are not associated with management, and public companies must register with and report to a regulatory agency such as the SEC.

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Definitions:

Ideology

A system of ideas and ideals, especially one that forms the basis of economic or political theory and policy.

Dominant Ideology

The prevailing cultural beliefs, values, and norms that tend to support and maintain the current power structure and societal hierarchy.

Marx

Karl Marx, a 19th-century philosopher, economist, and revolutionary socialist whose works on the critique of political economy and class struggle have profoundly influenced socialist thought.

Anomie

Durkheim’s term for a state of normlessness that results from a lack of clear goals and may ultimately result in higher suicide rates.