Which of the Following Is Generally NOT True and an Advantage

question 8

Multiple Choice

Which of the following is generally NOT true and an advantage of going public?

• A) Increases the liquidity of the firm's stock.
• B) Makes it easier to obtain new equity capital.
• C) Establishes a market value for the firm.
• D) Makes it easier for owner-managers to engage in profitable self-dealings.
• E) Facilitates stockholder diversification.

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Definitions:

Lifespan Approach

The study of human development from birth through old age, considering physical, cognitive, and socioemotional changes.

Socioeconomic Status

A gauge of the social and financial standing of an individual or family relative to others, influenced by factors like earnings, schooling, and career.

Prenatal Development

The sequence of evolving and developing in the womb from the point of conception to the time of birth.

Racial Socialization

The process by which individuals, usually children, learn the behaviors, perceptions, and expectations associated with their race from family members, society, and their culture.