Which of the Following Statements Is FALSE

question 9

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:

Ecological Validity

The extent to which research findings can be generalized to real-life settings.

Experimental Control

The practice in scientific experiments of keeping variables constant except for the variable being tested, ensuring that observed effects can be attributed to the variable of interest.

Natural Disaster

Severe and extreme weather or environmental events, such as hurricanes, earthquakes, or floods, that cause significant damage to life, property, and the environment.

Connectionist Approach

A theory of cognition that models mental or behavioral phenomena as the emergent processes of interconnected networks of simple units.