Which of the Following Statements Is True

question 39

Multiple Choice

Which of the following statements is true?

• A) After the IPO, there is a less active secondary market for the firm's shares.
• B) Only smaller amounts of capital can be raised through an IPO than the amount that can be raised through private sources.
• C) Publicly traded firms find it easier to attract top management talent.
• D) Going public can enable an entrepreneur to fund a growing business but not without giving up control.

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Definitions:

Annual Sales

The total revenue a company generates from its operations over a one-year period.

Net Income

The total profit of a company after all expenses, taxes, and costs have been deducted from total revenue, indicating the financial performance in a given period.

Total Revenue

Total Revenue is the full amount of income generated by the sale of goods or services related to a company's primary operations.

Profit Margin

A financial metric that measures the amount of net income earned with each dollar of sales generated by comparing net income and revenue.