Which of the Following Statements Is False

question 97

Multiple Choice

Which of the following statements is false?

• A) When a corporation's shares are owned by a few individuals who are associated with or are the firm's management,we say that the firm is "closely held."
• B) A publicly owned corporation is simply a company whose shares are held by the investing public,which may include other corporations and institutions as well as individuals.
• C) Going public establishes a true market value for the firm and ensures that a liquid market will always exist for the firm's shares.
• D) When stock in a closely held corporation is offered to the public for the first time the transaction is called "going public" and the market for such stock is called the new issue market.

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Definitions:

Apoenzyme

Protein portion of an enzyme; requires the presence of a specific coenzyme to become a complete functional enzyme.

Nonpolypeptide

A molecule or substance that does not consist of polypeptide chains, typically referring to chemicals or biological molecules outside the class of proteins.

Coenzyme

An organic cofactor for an enzyme; generally participates in the reaction by transferring some component, such as electrons or part of a substrate molecule.

Apoenzyme

The protein component of an enzyme, to which a coenzyme or cofactor must bind to form an active enzyme.