Which of the Following Statements Is FALSE

question 15

Multiple Choice

Which of the following statements is FALSE?

• A)Once a company goes public,it must satisfy all of the requirements of public companies.
• B)Organizations such as the Securities and Exchange Commission (SEC),the securities exchanges (including the New York Stock Exchange and the Nasdaq),and Congress (through the Sarbanes-Oxley Act of 2002)adopted new standards that focused on more thorough financial disclosure,greater accountability,and more stringent requirements for the board of directors.
• C)The major advantage of undertaking an IPO is also one of the major disadvantages of an IPO: When investors diversify their holdings,the equity holders of the corporation become more concentrated.
• D)Several high profile corporate scandals during the early part of the twenty-first century prompted tougher regulations designed to address corporate abuses.

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Definitions:

Outsourcing

The practice of hiring outside firms to handle work normally performed within a company, often to cut costs.

Consulting

The practice of giving expert advice within a particular field, often involving identifying problems and recommending solutions.

Outsiders

Individuals who are not part of a specific group, organization, or community, often lacking the specific knowledge or experiences of that group.

Organizational Bias

Unfair favoritism or prejudice within an organization, often leading to unequal treatment of employees.