Which of the Following Statements Is FALSE

question 48

Multiple Choice

Which of the following statements is FALSE?

• A)Usually, profitable growth opportunities occur throughout the life of the firm, and in some cases it is not feasible to finance these opportunities out of retained earnings.
• B)A firm's need for outside capital usually ends at the IPO.
• C)More often than not, firms return to the equity markets and offer new shares for sale, a type of offering called a seasoned equity offering (SEO).
• D)When a firm issues shares using an SEO, it follows many of the same steps as for an IPO. The main difference is that a market price for the shares already exists, so the price-setting process is not necessary.

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Definitions:

Criminal Penalties

Punishments imposed by the court system for committing acts that violate criminal law, including fines, imprisonment, or probation.

Civil Penalties

Civil penalties are fines or other forms of punishment imposed by a governmental agency for violations of regulatory laws or ordinances, not involving criminal prosecution.

Government Regulation

The act of controlling, directing, or managing activities, industries, or entities by a governing body.

Business Law

A branch of law that deals with the rights, relations, and conduct of individuals and businesses engaged in commerce, merchandising, trade, and sales.