Which of the Following Statements Is FALSE

question 22

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:

Quantity Demanded

The aggregate quantity of a product or service that buyers are prepared to buy at a distinct price point, during a specific time frame.

Marginal Revenue

The extra revenue generated by the sale of an additional unit of a product or service.

Competitive Industry

An industry structure with many firms competing against each other offering similar products or services, leading to lower prices and innovation.

Marginal Revenue

The additional income received from selling one more unit of a good or service; this is crucial for businesses in determining how many units to produce.