Which of the Following Statements Is FALSE

question 5

Multiple Choice

Which of the following statements is FALSE?

• A) In a rights offer, a firm offers the new shares only to existing shareholders.
• B) Secondary shares are shares sold by existing shareholders, including the company's founder.
• C) If a firm's management is concerned that its equity may be underpriced in the market, by using a rights offering, the firm can continue to issue equity without imposing a loss on its current shareholders.
• D) In the United States, most offers are rights offers.

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Definitions:

Intangible Attributes

Characteristics of a product or service that cannot be physically touched or seen, such as the brand reputation or the level of customer service.

Nondurable Good

Products that are consumed or are only usable for a short period of time, such as food, paper products, and fuel.

CarPlay

An Apple standard that enables a car radio or head unit to be a display and a controller for an iOS device.

Car Manufacturers

Companies engaged in the design, production, marketing, and selling of motor vehicles.