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:

Clean Air Act

A comprehensive federal law in the United States that regulates air emissions from stationary and mobile sources to control air pollution.

National Ambient Air Quality Standards

Federally established air pollution standards designed to protect the public health and welfare.

Permit System

A regulatory system that requires individuals or entities to obtain permission, usually from a government authority, before undertaking certain activities.

1990 Amendments

Changes or revisions made in 1990 to a previously existing law or policy, often referring to environmental or civil rights legislation.