Which of the Following Statements Is NOT CORRECT

question 11

Multiple Choice

Which of the following statements is NOT CORRECT?

• A) "Going public" establishes a firm's true intrinsic value and ensures that a liquid market will always exist for the firm's shares.
• B) Publicly owned companies have sold shares to investors who are not associated with management, and they must register with and report to a regulatory agency such as the SEC.
• 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) It is possible for a firm to go public and yet not raise any additional new capital.
• E) When a corporation's shares are owned by a few individuals who own most of the stock or are part of the firm's management, we say that the firm is "closely, or privately, held."

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Definitions:

Safety Standards

These are established guidelines and requirements designed to ensure the health, safety, and welfare of individuals in workplaces and public spaces.

Affective Commitment

is an employee's emotional attachment to, identification with, and involvement in an organization, which influences their decision to continue or discontinue employment.

Ethnocentrism

The practice of evaluating a different culture exclusively through the lens of one's own cultural norms and values.

Overload

A situation where the amount of work or information exceeds an individual's capacity to process it, leading to stress or decreased performance.