Regarding the Issuance of Stock,which of the Following Statements Is

question 59

Multiple Choice

Regarding the issuance of stock,which of the following statements is incorrect?

• A) Large corporations cannot finance all their operations through borrowing, so they raise capital by issuing stock.
• B) A company can sell its stock directly to stockholders, or it can use the services of the state's Securities and Exchange Commission.
• C) The issue price is the amount the corporation receives from issuing its stock.
• D) Large corporations need huge quantities of money.

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Definitions:

Polite Message

A form of communication that is respectful and considerate, often used to convey requests or information in a courteous manner.

Persisting Objections

Persistent objections are repeated or continuous expressions of dissent or disapproval that resist resolution or persuasion.

Disadvantages Outweigh

A condition where the negative aspects of a situation or decision surpass its positive aspects.

Resistance Expected

Anticipation that there will be opposition or pushback against a proposal, plan, or change.