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.

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Definitions:

Inferential Statistics

A branch of statistics that makes predictions or inferences about a population based on a sample of data drawn from that population.

Difference

The result of subtracting one quantity from another.

Inferential Statistics

A field within statistics that employs a random subset of data from a larger group to make deductions and provide descriptions about that larger group.

Personal Computers

Electronic devices used by individuals for a variety of tasks including processing, storing, and accessing data, typically consisting of a CPU, monitor, keyboard, and mouse.