Which of the Following Statements Is FALSE

question 5

Multiple Choice

Which of the following statements is FALSE?

• A) In a rights offer, a 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:

Nonunion Labor

Refers to workers who are not members of a labor union and therefore typically do not have the collective bargaining protections and benefits that unionized workers have.

Nonunion Firms

Companies where the workforce is not represented by a labor union.

Foreign Producers

Manufacturers or producers located in a country or jurisdiction different from where their products are sold or consumed.

Wage Increases

Adjustments or rises in the amount of money that workers are paid for their labor, often seen as a reflection of economic growth or inflation.