When a Firm Goes Public and Issues Stock in the Primary

question 83

Multiple Choice

When a firm goes public and issues stock in the primary market,

• A) the equity investment in the firm declines.
• B) the firm's debt level increases.
• C) the number of the firm's owners increases.
• D) A and C

---

Definitions:

Organizational Restructuring

The process of changing an organization's structure, strategies, or processes to improve efficiency, productivity, or adapt to new challenges.

Unfreezing

The process in Lewin's change management model where existing behaviors or attitudes are challenged to prepare for change.

Lewin's Basic Change Model

A model of change management proposing three steps: unfreezing, changing, and refreezing, to facilitate and solidify change within an organization.

Status Quo

The existing state or condition of affairs, often used in the context of maintaining current systems or resisting change.