The Disclosure Requirements for Private Entities Are Usually Less Extensive

question 112

Multiple Choice

The disclosure requirements for private entities are usually less extensive as compared to those for public entities because

• A) investors in private entities are expected to have less information about the company.
• B) investors in private entities are expected to have more information about the company.
• C) investors in private entities tend to be more sophisticated.
• D) investors in private entities tend to be less sophisticated.

---

Definitions:

Moral Development

The process by which individuals develop attitudes and behaviors toward others based on social norms, cultural practices, and personal beliefs regarding what is right and wrong.

Child Culture

The idea that each group of children has games, sayings, clothing styles, and superstitions that are not common among adults, just as every culture has distinct values, behaviors, and beliefs.

Test-retest Reliability

The consistency of an individual's scores on the same test administered on two different occasions.

Content Validity

The degree to which a test or assessment measures all facets of the concept it intends to measure.