Which of the Following Statements Is Not Correct

question 8

Multiple Choice

Which of the following statements is not correct?

• A) In public limited companies,a minimum number of capital providers is required,but no maximum is ever specified.
• B) When shares of public limited companies can be traded freely on open financial markets,these shares are liquid and offer a preferred medium of investment for capital providers.
• C) Most of the time,shares of public limited companies can be traded freely on open financial markets.
• D) Each country's legislation specifies a minimum amount of capital and this minimum is generally lower for public limited companies than it is for the private limited companies.

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Definitions:

Test Statistic

A calculated value from sample data used to make decisions about the validity of a hypothesis.

Two-tail Test

A statistical test where the critical area of a distribution is two-sided and tests whether a sample is greater than or less than a certain range of values.

P-value

The probability of observing results as extreme as those observed in a study, under the assumption that the null hypothesis is true.

Null Hypothesis

A hypothesis in statistical analysis that assumes no significant difference or effect exists between specified populations or parameters.