Which of the Following Statements Is False

question 11

Multiple Choice

Which of the following statements is false?

• A) In a rights offer, the firm offers the new shares only to existing shareholders.
• B) Secondary shares are shares sold by existing shareholders, including the company's founder.
• C) If a firm's management is concerned that its equity may be underpriced in the market, by using a rights offering the firm can continue to issue equity without imposing a loss on its current shareholders.
• D) In the United States most offers are rights offers.

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Definitions:

Undue Hardship

A significant difficulty or expense imposed on an employer by accommodating an employee's disability or religious practices.

Small Business

An enterprise that is independently owned and operated, often characterized by a small number of employees and limited revenue.

Sign Language Interpreter

A professional who facilitates communication between deaf or hard of hearing individuals and hearing individuals using sign language.

Undue Hardship

A significant difficulty or expense imposed on an employer by accommodating an employee's disability or religious practices, beyond what is deemed reasonable.