One of the Things That Underwriters Look for in a Company

question 54

Multiple Choice

One of the things that underwriters look for in a company that wants to go public is:

• A)presence in a mature industry.
• B)filing fees with the SEC.
• C)strong bankers.
• D)a clear organizational structure.

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Definitions:

Profit Center

A business segment or department within an organization that is responsible for generating its own revenue and thereby directly impacting profitability.

Responsibility Center

A department or unit within an organization that is accountable for specific activities and performance, with its performance measured against planned objectives.

Generates Revenues

Refers to the activities or mechanisms through which a business or organization brings in income.

Traceable Fixed Cost

A fixed cost that can be directly associated with a specific cost object, such as a product, department, or project.