Which of the Following Statements Is False

question 42

Multiple Choice

Which of the following statements is false?

• A) More often than not, firms return to the equity markets and offer new shares for sale, a type of offering called a seasoned equity offering (SEO).
• B) Usually, profitable growth opportunities occur throughout the life of the firm, and in some cases it is not feasible to finance these opportunities out of retained earnings.
• C) When a firm issues stock using an SEO, it follows many of the same steps as for an IPO. The main difference is that a market price for the stock already exists, so the price-setting process is not necessary.
• D) A firm's need for outside capital usually ends at the IPO.

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Definitions:

Indirect Values

Benefits provided by ecosystems that do not have a direct economic value, such as climate regulation and cultural significance.

Biodiversity

The variety of plant and animal life in the world or in a particular habitat, considered important for maintaining ecological balance.

Trees

Perennial plants with an elongated stem, or trunk, supporting branches and leaves in most species.

Erosion

Erosion is the process by which natural forces like water, wind, or ice wear away land surfaces, transporting the materials from one location to another.