Which of the Following Statements Is FALSE

question 29

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 NYSE 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:

Group Conformity

The act of matching attitudes, beliefs, and behaviors to what individuals perceive as normal to their group.

In-Group Boundaries

The perceived lines that define the membership of a particular group, distinguishing insiders from outsiders.

Jewish Grandparent

Refers to a grandparent of Jewish heritage, emphasizing cultural or religious identity within a familial context.

Formal Organization

An organized group of people with a fixed structure and rules designed to achieve specific goals, often marked by a clear hierarchy and division of labor.