Which of the Following Statements Is FALSE

question 24

Multiple Choice

Which of the following statements is FALSE?

• A)Organisations such as the Australian Securities and Investments Commission (ASIC), the Australian Securities Exchanges (ASX), and other regulatory authorities adopted new standards that focused on more thorough financial disclosure, greater accountability, and more stringent requirements for the board of directors.
• B)Several high profile corporate scandals during the early part of the twenty-first century prompted tougher regulations designed to address corporate abuses.
• 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)Once a company goes public, it must satisfy all of the requirements of public companies.

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Definitions:

Agree

To accept or consent to a viewpoint or proposition shared by others.

Compliance Technique

Methods or strategies used to persuade someone to agree to a request or follow a command. These often involve psychological principles to influence behavior.

Lowball

A sales strategy where an item or service is initially offered at a lower than usual price to attract customers, who are then informed of additional costs or conditions that increase the overall price.

Milgram Studies

A series of psychological experiments conducted by Stanley Milgram in the 1960s to measure individuals' willingness to obey authority figures, even when instructed to perform actions conflicting with their personal conscience.