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:

Case Study Approach

A research method involving an up-close, in-depth, and detailed examination of a subject of study (the case), as well as its related contextual conditions.

Random Selection

Selection of a sample in such a way that each person in a population has an equal and independent chance of being chosen.

Sampling Methods

Techniques used to select a portion of a population for study, aimed at making inferences about the entire population.

Representative

An individual who acts on behalf of another person(s), typically in a legislative or decision-making capacity.