Which of the Following Statements Is FALSE

question 29

Multiple Choice

Which of the following statements is FALSE?

• A) Once a company goes public, it must satisfy all of the requirements of public companies.
• B) Organizations such as the Securities and Exchange Commission (SEC), the securities exchanges (including the NYSE and the NASDAQ), and Congress (through the Sarbanes-Oxley Act of 2002) adopted new standards that focused on more thorough financial disclosure, greater accountability, and more stringent requirements for the board of directors.
• C) The major advantage of undertaking an IPO is also one of the major disadvantages of an IPO: When investors diversify their holdings, the equity holders of the corporation become more concentrated.
• D) Several high profile corporate scandals during the early part of the twenty-first century prompted tougher regulations designed to address corporate abuses.

---

Definitions:

Lawn-mowing

The process of cutting the grass in a yard or field to a uniform length, typically using a manual, electric, or gas-powered lawn mower.

Short-run Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity supplied over a short period.

Perfectly Competitive

An alternative term for perfect competition, emphasizing a market scenario with many buyers and sellers and no barriers to entry.

Marginal Cost Curve

A graphical representation that shows how the cost of producing one more unit of a good or service varies as production increases.