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:

Falsely Completing

The act of unlawfully finishing or filling out a document or object with incorrect or misleading information.

Tampering

Tampering involves altering or interfering with something in a deceitful manner, often to manipulate outcomes or evidence.

Illegal Act

An action that violates laws, regulations, or statutes, resulting in criminal or civil legal consequences.

Notify SEC

The act of informing the Securities and Exchange Commission about relevant or required information.