All of the Following Are Often True of Privately Held

question 11

Multiple Choice

All of the following are often true of privately held firms except for

• A) Financial data is often inaccurate and out of date
• B) Internal controls are ineffective
• C) Have limited access to capital markets and product distribution channels
• D) Are more easily valued than public companies
• E) Have limited ability to influence customers, suppliers, unions, and regulators

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Definitions:

Socialization

The process by which individuals acquire the knowledge, skills, and behaviors that are necessary for functioning within a society or organization.

Pre-employment

Pertaining to processes or assessments that occur before an individual officially becomes an employee.

Psychological Contract

An unwritten agreement that sets out mutual expectations between employees and employers, including informal arrangements, perceived promises, and obligations.

Reality Shock

The experience of realizing that the actualities of a situation or environment are different from one's expectations or beliefs.