Which of the Following Is Generally NOT True and an Advantage

question 10

Multiple Choice

Which of the following is generally NOT true and an advantage of going public?

• A) increases the liquidity of the firm's stock.
• B) makes it easier to obtain new equity capital.
• C) establishes a market value for the firm.
• D) makes it easier for owner-managers to engage in profitable self-dealings.
• E) facilitates stockholder diversification.

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Definitions:

Raymond Cattell

A psychologist known for his work in personality traits, factor analysis, and the development of several personality assessments.

Projective Test

A type of personality test in which the individual interprets ambiguous stimuli, revealing hidden emotions and internal conflicts.

Thematic Apperception Test

A projective psychological test that asks respondents to create stories about ambiguous scenes, used to uncover underlying motives, concerns, and how they see the social world.

Murray

A psychologist known for his theory of personality, which emphasizes the influence of needs and motives on individual behavior.